Judgement

R. C. LAHOTI, J. :- The Tata and Steel Company Ltd. (TISCO, for short), the appellant before us, has imported certain equipments and drawings and engineering documents from Siderugia National of Portugal - a Government of Portugal Undertaking. It appears that some time in the year 1981 Italimpianti, Genevo, Italy supplied materials, designs and engineering drawings etc. to Siderugia National Portugal (hereinafter SNP, for short) for setting up rolling mill project in Portugal. The supplies consisted of equipments for blast furnace, LD converter, steel plant bellet castors, wire rod mills, torpedo ladle cars etc. However, before the equipments could be installed, Portugal decided to join European Economic Community (EEC) consequent whereupon Portugal could not have expanded its steel making capacity. SNP decided to cancel its investment plan and to sell the equipments and materials which were lying unused from 1981 to 1986. On 14th April, 1988 a protocol was singned between the seller and purchaser companies (i.e. SNP and TISCO) which inter alia stated that the total price will be price for the equipment plus price for the engineering FOB Portugal-Lisbon port. The price for