The
Andhra Petrochemicals Vs. Collector of Customs Madras [1997] INSC 130 (6
February 1997)
B.P.
JEEVAN REDDY, K. VENKATASWAMI
ACT:
HEAD NOTE:
O R D
E R We have heard the counsel for both the parties at some length. We have been
taken through the three agreements concern herein, the orders of the Government
of India and the Judgment of the Tribunal under appeal. We are inclined to
agree with the Tribunal that the three agreements represent a single
transaction between the appellant and Davy Mckee (London ) Limited, U.K. and that they are in the nature of a package deal.
It may be that all the equipment that was contemplated to be purchased abroad
was not purchased and that some of it was locally procured but what was
imported was specially manufactured on the basis of design and engineering
specifications provided by Davy. We are of the opinion that the Tribunal was
tight in holding that the agreement relating to purchase of equipment cannot be
dissociated from the other agreements and that the authorities were right in
loading the design and engineering charges at Pounds 11.50 lakhs on to the
value of the imported equipment under Rule 9 read with Rule 4 of the Customs
Valuation Determination of Price of Imported (goods) Rules, 1988. The facts set
out by the Tribunal in Paras 32 to 34 do support the conclusion arrived at by
it. We see no reason to differ from the view taken by the Tribunal. The appeal
accordingly fails and is dismissed. No costs.
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