9911796707
TMI Blog2000 (5) TMI 125X X X X Extracts X X X X X X X X Extracts X X X X ..... up two Recoiling & Inspection Lines Project (in short "RCL Project"). After evaluating the offers received they entered into an Agreement with M/s LOI Thermprocess GmbH, Germany (hereinafter referred to as LOI). The Service Contract related to different services in connection with setting up of the said Project and to various connected activities in India. The contract price was DM 47,34,783/-inclusive of freight and insurance charges. From the various service clauses it is seen that the services related to different activities to be undertaken in India in connection with manufacture of indigenous machinery and equipments required for setting up of the said Project and for various other activities in connection with installation, commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice to the appellant calling upon them to show cause as to why the price paid by it for the designs and drawings and/or for the services under the Service Contract entered into with LOI and DBI should not be treated as a part of the value of machinery and equipments imported/ to be imported by it under the respective Machinery Contracts in terms of Rule 9(1)(e) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 (Valuation Rules) and the designs and drawings imported should not be assessed as such. It was, inter alia alleged in the said notice that the payments for the services under the two Service Contracts were made as a condition of sale of the goods under the Machinery Contracts. The Asstt. Commr. held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the Section Notes of Section XVI whereunder Chapter 84 of the Customs Tariff falls nor the Chapter Notes of Chapter 84 provide that designs and drawings which are imported as a condition of sale of machinery under another contract and because of which the value of such designs and drawings have to be loaded to the value of the machinery and equipments to be imported under the said separate contract have to be and/or can be classified or assessed with reference to the Tariff Heading of the corresponding machinery. There is no Tariff sub-heading contained in Chapter 84 of the Customs Tariff which provides for such assessment or classification. Similar is the case under Section X in which Chapter 49 is contained and under Chapter 49 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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