HY-GRADE PELLETS LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) Heard both sides. The assessee was asked to pay a sum of Rs. 6,46,96,989/ - for the shortfall in export obligation. The contention of the applicant that the above demand is not sustainable in view of the clearance granted by DGFT authorities. This contention of the appellant is prima facie supported by the Board Circular No. 25/2003, dated 1 -4 -2003.

(2.) The demand of Rs. 11,99,29,516/ - is on the ground that design and engineering charges are to be added to the assessable value of the imported goods under Rule 9 of the Customs Valuation Rules. It was pointed out by the appellant that design and drawings were not required for the manufacture of the imported goods but required for the fabrication of the plant in India. If that be so, ratio of the decision of the Tribunal in the case of SRF Ltd. v. Commissioner of Customs reported in 2003 (161) E.L.T. 721 (S.C.) = 2003 (58) RLT 249 and Essar Steel Ltd. v. Commissioner of Customs reported in 2003 (158) E.L.T. 362 would be applicable to the present case. If that be so licence fee cannot be added for arriving at the assessable value of imported goods.

(3.) Prima facie we are satisfied that design and drawings are in connection with the fabrication of the plant and not relating to the goods imported.