THE ANDHRA PETROCHEMICALS versus COLLECTOR OF CUSTOMS, MADRAS
The agreements were held to be a single transaction and package deal, and design and engineering charges at Pounds 11.50 Lakhs were rightly loaded onto the value of imported equipment under Rule 9 r/w Rule 4 of the Customs Valuation Determination of Price of Imported (goods) Rules, 1988.
Source-derived case information.
- Parties
- Appellant: The Andhra Petrochemicals; Respondent: Collector of Customs, Madras
- Jurisdiction
- India
- Procedural Posture
- Civil Appeal / Appeal From Customs Excise and Gold (control) Appellate Tribunal Decision
- Outcome
- Appeal dismissed
- Legal Topics
- Valuation of Imported Goods, Package Deal, Design and Engineering Charges
Source-derived case record
Summary, issues, holding and outcome
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Parties
The Andhra Petrochemicals
Appellant
Collector of Customs, Madras
Respondent
Procedural Posture
Civil Appeal / Appeal From Customs Excise and Gold (control) Appellate Tribunal Decision
Legal Issues
- 1 Whether three separate agreements relating to import constitute a package deal for customs valuation purposes
- 2 Whether design and engineering charges should be loaded onto the value of imported equipment
Ratio Decidendi
The agreements were held to be a single transaction and package deal, and design and engineering charges at Pounds 11.50 Lakhs were rightly loaded onto the value of imported equipment under Rule 9 r/w Rule 4 of the Customs Valuation Determination of Price of Imported (goods) Rules, 1988.
Court Disposition
Appeal dismissed
Orders
- No costs
Full Case Text
Judgment text and source record
31 paragraphs
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THE ANDHRA PETROCHEMICALS v. COLLECTOR OF CUSTOMS, MADRAS
FEBRUARY 6, 1997
[B.P. JEEVAN REDDY AND K VENKATASWAMI, JJ.)
A
B
Customs Valuation Determination of Price of Imported (goods) Rules,
1988.
Rule 9 r/w ~Import of equipment-Three separate agree- C
ments-Whether a single transaction and are package deal-Held, Tribunal was right in holding the agreement relating to purchase of equipment cannot be disassociated from other agreements-Hence the authorities were right in loading the design and engineering charges on to the value of the imported equipment. '
Clv1L APPELLATE JURISDIQTION : Civil Appeal No. 7351 of
19!l3.
From the Judgment and Order dated 30.7.93 of the Customs Excise and Gold (Control) Appellate Tribunal, New Delhi in Custom Appeal No. C/1570 of 1992-A.
M. Chandrasekharan and C.N. Sree Kumar for the Appellants.
M. Gauri Shankar Murthy, Y.P. Mahajan and V.K. Verma for the
Respondent.
D
E
F
Th~ following Order of the Court was delivered :
We have heard the counsel for both the parties at some length. We have been taken through the three agreements concern herein, the orders of the Government of India and the Judgment of the Tribunal under appeal. We arc inclined to agree with the Tribunal that the three agree- G ments represent a single transaction between the appellant and Davy Mckee (London) Limited, U.K. and that they are in the nature of a · package deal. It may be that all the equipment that was contemplated to be purchased abroad was not purchasi::d and that some of it was locally procured but what was imported was specially manufactured on the basis H
991
992
SUPREME COURT REPORTS
[1997] 1 S.C.R.
_,
A of design and engineering specifications provided by Davy. We are of the opinion that the Tribunal was right in holding that the agreement relating to purchase of equipment cannot be dissociated from the other agreements and that the authorities were right in loading the design and engineering charges at Pounds 11.50 Lakhs on to the value of the imported equipment B under Rule 9 read with Rule 4 of the Customs Valuation Determination of Price of Imported (goods) Rules, 1988. The facts set out by the Tribunal in Paras 32 to 34 do support the conclusion arrived at by it. We 1see no reason to differ from the view taken by thi:: Tribunal. The appeal accord ingly fails and is dismissed. No costs.
C G.N.
Appeal dismissed .
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