CA Bimal Jain
Same Engines India Pvt. Ltd. (the Respondent) had imported components of Tractors from Foreign party and filed Bill of Entry stating the price at which the goods were imported and seeking to pay the Customs duty thereon. The Department observed that the Respondent had also entered into Technical Know-how Agreement with the same manufacturer and the cost of the said Technical Know-how agreement was not included while declaring the value of the goods and thereby, demand was confirmed.
The Hon’ble Supreme Court relying upon its own case in the case of Commissioner of Customs, Ahmedabad Vs. M/s. Essar Steel Ltd. [2015(319) ELT 202] held that the services in terms of Technical Know-how Agreement has been provided post importation, and therefore, could not be added to the value of the goods imported.