Full Judgment Text
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PETITIONER:
THE ANDHRA PETROCHEMICALS
Vs.
RESPONDENT:
COLLECTOR OF CUSTOMS MADRAS
DATE OF JUDGMENT: 06/02/1997
BENCH:
B.P. JEEVAN REDDY, K. VENKATASWAMI
ACT:
HEADNOTE:
JUDGMENT:
O R D E R
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 are inclined
to agree with the Tribunal that the three agreements
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
purchased and that some of it was locally procured but what
was imported was specially manufactured on the basis of
design and engineering specifications provided by Davy. We
are of the opinion that the Tribunal was tight 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 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 see no
reason to differ from the view taken by the Tribunal. The
appeal accordingly fails and is dismissed. No costs.