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TMI Blog2008 (11) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... tion services (i.e.. several post importation activities including erection, commissioning and training of persons) does not require to be added, as the goods are required to be valued at the time and place of importation - C/931/2005 - C/611/2008(PB) - Dated:- 18-11-2008 - S/Shri M. Veeraiyan, Member (T) and P.K. Das, Member (J) Shri Prabhat Kumar, Advocate, for the Appellant. Shri Vijay Kumar, DR, for the Respondent. [Order per : M. Veeraiyan, Member (T)].- This is an appeal against the order of the Commissioner (Appeals) No. CC(A)/329/ACU/Delhi-I/2005, dated 22-8-2005 by which he upheld the order of the original authority. 2. Heard both sides. 3. The relevant facts, in brief, are as follows:- (a) The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany in India is to be paid as a running royalty to the supplier in Finland. (e) The original authority held that the supplier and the appellant are related persons and that the relationship has influenced the price of the goods imported by the appellant. Accordingly, he added Rs. 70 lakh (2 lakh US$ at Rs. 35/- per U.S.$) to the total value of Rs 13,21,54,702/ = of imports of raw materials from inception to 24-2-2004 and enhanced the assessable value by 18.9 per cent. He also held that after 24-2-2004, such addition was not necessary. (f) He also held that as per agreement the capital goods are to be supplied at 4 lakh US$ and therefore 50,000 US$ should be treated as additional consideration and that the differential duty should be p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd, therefore, the addition of cost of post importation services like erection, and commissioning and training of persons is not justified. He also submits that this amount of US$ 50,000 was not paid and the same was waived. 5.1 Learned SDR submits that the supplier has stipulated a condition that the raw material is to be procured from them. Therefore, receipt of 2 lakh US$ towards technical know-how cannot be attributed only towards technical know-how for manufacture of the final product by the appellant. At least part of the value is required to be added towards value. 5.2 He also submits that Section 14 of the Customs Act had been amended in the year 2002 by which concept of relationship linked, to mutuality of interest has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er has procured the capital goods and assisted in several post importation activities including erection, commissioning and training of persons. The cost towards such post importation services does not require to be added, as the goods are required to be valued at the time and place of importation. Therefore, the submission by the learned Advocate that the value of the goods was only 3.50 lakh US$ on which duty has already been paid and the balance was towards services rendered in India has not been effectively refuted with any evidence to the contrary and hence requires to be accepted. 8. In view of the above, we set aside the impugned order and allow the appeal with consequential relief. (Dictated pronounced in the Open Court) - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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