In Brief
Coal India Limited imported spare parts for P&H Shovels from a US supplier (Harnischfeger Corporation) through its local distributor Voltas Limited. The foreign supplier mandated payment of 8% of the FOB value as engineering and technical service charges to Voltas for product support services like technical assistance, maintenance coordination, and customs clearance support. Customs authorities included these charges in the assessable value, claiming short levy of duty. The Supreme Court dismissed Coal India's appeal, holding that the services rendered were directly relatable to importation and formed a condition of sale, therefore properly includable under Rule 9(1)(e) of the Customs Valuation Rules, not post-importation activities.
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