CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL MUMBAI REGIONAL BENCH Customs Appeal No. 86896 of 2016 [Arising out of Order-in-Original No. COMMR/AKG/33/2016/ADJN. ACC (X) dated 13.05.2016 passed by the Commissioner of Customs-IV, Air Cargo Complex-Export, Mumbai Zone-III.]

M/s. Shairu Gems Diamonds Pvt. Ltd. ........Appellant DE-1902, Bharat Diamond Bourse, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 VERSUS Commissioner of Customs-IV, (Air Cargo ........Respondent Complex-Export), Mumbai Zone-III Sahar, Andheri (East), Mumbai – 400 099 WITH (i) Customs Appeal No. 86568 of 2016 (Neelam Exports); (ii) Customs Appeal No. 86581 of 2016 (Sheetal Manufacturing Co. Pvt. Ltd.); (iii) Customs Appeal No. 86699 of 2016 (S Vinodkumar Diamonds Pvt. Ltd.); (iv) Customs Appeal No. 86714 of 2016 (Hari Krishna Exports Pvt. Ltd.); (v) Customs Appeal No. 86715 of 2016 (HVK International Pvt. Ltd.); (vi) Customs Appeal No. 86723 of 2016 (Kiran Gems Pvt. Ltd.); (vii) Customs Appeal No. 86745 of 2016 (Laxmi Diamond Pvt. Ltd.); (viii) Customs Appeal No. 86756 of 2016 (Shree Ramkrishna Exports Pvt. Ltd.); (ix) Customs Appeal No. 86840 of 2016 (Kapu Gems); (x) Customs Appeal No. 86414 of 2019 (Blue Star Diamonds Pvt. Ltd.); (xi) Customs Appeal No. 86851 of 2016 (Vallabhbhai Dhanjibhai & Co.); (xii) Customs Appeal No. 87302 of 2019 (Aurostar Jewellery India Pvt. Ltd.); (xiii) Customs Appeal No. 87965 of 2019 (Munjani Brothers); (xiv) Customs Appeal No. 86450 of 2016 (Mahendra Brothers Exports Pvt. Ltd.); (xv) Customs Appeal No. 86706 of 2016 (Dharmanandan Diamonds Pvt. Ltd.); (xvi) Customs Appeal No.

86834 of 2016 (K Girdharlal International Pvt. Ltd.)

[Arising out of Order-in-Original No. COMMR/AKG/11,13-23,29/2016/ADJN. ACC (X) dated 31.03.2016; MUM/CUSTM/AXP/APP/1149/2018-19 dated 26.02.2019; MUM/CUSTM/AXP/APP/51/2019-20 dated 30.04.2019 and MUM/CUSTM/AXP/ APP/290/2019-20 dated 18.07.2019 passed by the Commissioner of Customs-IV, Air Cargo Complex-Export, Mumbai Zone-III.]

APPERANCE Shri Jhamman Singh, Advocate for the Appellant Shri Shambhoo Nath, Special Counsel, Authorised Representative for the Respondent CORAM:

HON’BLE DR. SUVENDU KUMAR PATI, MEMBER (JUDICIAL)

HON’BLE MR. M.M. PARTHIBAN, MEMBER (TECHNICAL)

FINAL ORDER NO. 85365-85381/2026 Date of Hearing: 19.12.2025 Date of Decision: 25.02.2026 PER: DR. SUVENDU KUMAR PATI Whether value of the software and value of the hardware can be taken together to determine transaction value of Diamond Cutting and Scanning Machines for the purpose of Section 14 of the Customs Act and whether such redetermination of assessable value can be done after assessment by the proper Officer followed by clearance of goods, are the issues required to be determined in all these appeals, which were heard together as arose from a common investigation by DRI Ahmedabad, much after clearance of goods.

2. Succinctly stated, facts of the case would go to reveal that between 2009 and 2012, Appellants have imported diamond processing / scanning machines for cutting and polishing rough diamonds after importation which were exported by them after such cutting and polishing. All of them have imported those machines alongwith functional softwares from M/s. Sarin Technologies Ltd. and M/s. Galatea Ltd., both of Israel and the installation of machines, loading of software in the machines including repair, maintenance of the machines as well as training of the employees were all handled by M/s. Sarin Technologies India Pvt. Ltd., a subsidiary M/s. Sarin Technologies Ltd. – Israel. Some machines were preloaded with softwares, some were being loaded with softwares after downloading the same here in India after installation of the machines and the security key dongle was being provided to make run the software properly. All imports were made under the EPCG licence issued by the DGFT Authorities and all imports had taken place prior to self-

assessment era, commenced on and after 14.05.2011 and therefore, assessments were done by Custom