IMPORTANT POINT
Computation of assessable value of imported goods – What would be excluded for computing assessable value for the purpose of levy of customs duty is any amount paid for post-importation activities including any amount paid for post-importation technical assistance.

JUDGMENT :

UJJAL BHUYAN, J.

This is an appeal under Section 130E of the Customs Act, 1962 against the order dated 20.04.2010 passed by the Customs, Excise and Service Tax Appellate Tribunal, Kolkata in appeal No.CDM-164/2004.

2. Be it stated that appellant had filed appeal No.CDM-164/2004 before the Customs, Excise and Service Tax Appellate Tribunal, Kolkata (‘CESTAT’ for short hereinafter) assailing the order dated 21.06.2004 passed by the Commissioner of Customs (Appeals), Kolkata confirming the order of the Assistant Commissioner of Customs and dismissing the appeal filed by the appellant.

3. This Court by order dated 10.09.2010 had condoned the delay and had issued notice.

4. Relevant facts may be briefly noted.

5. Appellant is a Government of India undertaking and has subsidiaries in the country.

6. On 26.02.2000, Central Coalfields Limited, which is a subsidiary of the appellant, had invited sealed tenders for supply of spare parts for P&H Shovel.

7. On 28.03.2000, M/s Harnischfeger Corporation, USA submitted its quotations through its distributor M/s Voltas Limited. In the terms and conditions, towards engineering and technical service fees an amount of 8 percent of the Free on Board (FOB) amount valued on pro-rata basis against each shipment, was to be paid to M/s Voltas Limited, Kolkata in Indian rupees. Payment to be made to M/s Voltas Limited was not to be deducted from the FOB amount.

8. On 03.04.2000, M/s Voltas Limited submitted detailed quotation on behalf of its principal M/s Harnischfeger Corporation, USA (foreign supplier).

9. Purchase order was placed on 20.12.2000 with the foreign supplier for supply of spares required for P&H Shovel. Clause 5 of the purchase order is relevant and reads thus:

Note:-

(1) Documents from sl. no.(i) to (vii) form a complete set.

(2) One copy of packing list & certificate of origin should be inserted inside each package for reference & identification purpose of the items packed in the particular package.

(3) One copy consisting of a set of documents from sl. no. (i) to (vii) should also be sent by courier well in advance along with technical literatures/pamphlets, dimensional drawings, sketch, quality certificate, warranty certificate etc. to avoid delay in effecting clearance of goods and also their proper receipt at ultimate consignee and its accountal etc. to the following:

(a) The Dy. Chief Engineering, C&F Department, Coal India Ltd., 6-Lyons Range, Calcutta- 700001 (India).

(b) The Chief General Manager (Equipment), Central Coalfields Limited, Darbhanga House, Ranchi – 834001 (India).

(c) The Dy. Chief Materials Manager (P), Central Coalfields Limited, 15, Park Street, Calcutta – 700001 (India).

(d) The Dy. Chief Materials Manager (P), Purchase Deptt., Central Coalfields Limited, Darbhanga House, Ranchi – 834001 (India).

(e) The Finance Manager (HQ), C