Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1988- r. 4 rw r. 9(1 )(d) & (e) Customs Valuation (Determination of Price of Imported Goods) Rules 1962- s. 46(4) r. 10- Customs Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | Customs Valuation (Determination of Price of ImportedGoods) Rules, 1988- r. 4 rw r. 9(1 )(d) & (e), r. 10- CustomsAct, 1962- s. 46(4):Transaction value - Import of parts of the Gas Turbine ·Hot Section of a power plant which have to be replaced after12, 500 fired hours of use under a Long Term Assured PartsSupply Agreement(LTAPSA) entered into with foreigncompany - Valuation of - Appellant entered into anagreement for seri/ice and supply of parts with the companybeing a LTAPSA - Import of various parts of the said plantunder two bills of entry - Parts identified as having to bereplaced re-exported back to the company under cover ofshipping bills before the aforesaid bills of entry presentedfor import of the replaced parts to the customs authorities -Appellant paid customs duty based on the value declared inthe said bills of entry but did not make any payment to thecompany based on these invoices since payments hadalready been made based on fired hour charges - Issuanceof show cause notice that 1/3rd of the value of the importeditems be added to the invoice value as that was said torepresent the amount of the parts that were replaced and re-exported back to the company - Evasion of customs dutyand goods liable to confiscation - Commissioner of Customsupheld the demand holding that as per the LTAPSA sinceassessee declared only the differential value of the returnedparts and the parts imported, 1 /3rd of the invoice value of the imported parts needs to be added to arrive at the correct assessable value - Tribunal upheld the order- On appeal,held: Commissioner of Customs and the tribunal were wrongin concluding that the invoice price is only an incrementalvalue price and not the price of the articles supplied by thecompany - Thus, order of Commissioner and tribunal set aside.Exemption notification - Benefit of - Import of goodsunder bills of entry - Exemption notification - Claim of, byappellant- Importer-appellant did not produce the certificate at the time of import - Denial of benefit of exemptionnotification to the appellant by the Department, however,allowed by the tribunal- On appeal, held: Once the authoritiesare satisfied that the goods are required for renovation, thecustoms department does not need to go deep into the matter and by hairsplitting and semantic niceties deny the benefitof the exemption notification - |
Judge | Hon'ble Mr. Justice R.F. Nariman |
Neutral Citation | 2015 INSC 802 |
Petitioner | M/s. Gmrenergy Ltd |
Respondent | Commissioner Of Customs, Bangalore |
SCR | [2015] 10 S.C.R. 106 |
Judgement Date | 2015-10-27 |
Case Number | 4920 |
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