Supreme Court of India

Collector of Customs (preventive), Ahemdabad v. M/s Essar Gujarat Ltd. Surat

Neutral citation
Reported as [1996] SUPP. 8 S.C.R. 757
Bench B.P. Jeev An Reddy, Suhas C. Sen and K.S. Paripoornan JJ.
Decided 19 November 1996

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

6 Supreme Court benches have cited this judgment.

What the Court ordered

We are of the view that DM 2,000,000 being the process H 776 SUPREME COURT REPORTS [ 1996] SUPP. 8 S.C.R. A licence fee paid to Midrex Corporation, DM I 0, I 00,000 being the cost of technical services provided by Midrex and a sum of OM 2,310,000 being payment.on account of engineering and consultancy fee payable to V.A. should be added to the value of the imported plant.

Judgment, page 19

From the headnote

Customs Tariff Act 1975 Section 14. Customs valuation (determination of price of Imported Goods) Rules 1988-Rule 9·-Determination of the /value of the imported plant-The licence fees as well as the payment made for the technical services should be added to the invoice value of the imported plant. The respondent, entered into a contract with Mis. Telviot Investment Ltd. for purchase of a Direct Reduction Iron Plant on 24.3.1987. The entire agreement was subject to two conditions, namely, approval of the Government of India within 30th April, 1987 and obtaining transfer of operationolicence

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