Coal India Limited Vs Commissioner of Customs (Port) (Supreme Court of India)
Supreme Court held that engineering and technical service fee/ charges paid to local agent of foreign supplier constitute an integral condition of sale of imported goods and hence includible in the assessable value of imported goods.
Facts- Appellant is a Government of India undertaking and has subsidiaries in the country. 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.
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.
On 03.04.2000, M/s Voltas Limited submitted detailed quotation on behalf of its principal M/s Harnischfeger Corporation, USA (foreign supplier). Purchase order was placed on 20.12.2000 with the foreign supplier for supply of spares required for P&H Shovel.
Foreign supplier supplied the spares on 21.03.2001 which were received by the appellant on provisional assessment of bills of entry made by the customs authority.
