Case nº Ruling No. AAR/Cus-1/26/2016 in Application No. AAR/44/Cus-1/5/2015 of AAR Cases, August 05, 2016 (case In Re : First Concept Production Services Pvt. Ltd. Vs)
|Judge:||For Appellant: Shri Tarun Gulati, Kishor Kunal and Manish Rastogi, Advocates and For Respondents: Dr. Sudesh Sheoran, AR|
|President:||V.S. Sirpurkar, Chairman, S/Shri S.S. Rana and R.S. Shukla, Members|
|Defense:||Customs Act, 1962 - Section 14|
|Resolution Date:||August 05, 2016|
|Issuing Organization:||AAR Cases|
1. M/s. First Concept Production Services Private Limited (hereinafter also referred to as applicant) is a resident private limited company. The applicant is a wholly owned subsidiary of Production Resources Management ("PRM"), of which the ultimate parent company is Broadcast Solutions ("BS"). BS engaged, inter alia, in the business of providing broadcasting related and production services including providing broadcasting equipment on rental basis to various customers throughout the globe. The applicant is in the process of setting up its business of providing support services to various broadcasting companies for conducting sports and entertainment related events. The applicant wishes to provide outdoor broadcast related production services, which will include provision of production and such other associated services relating to broadcast of events ("programme production services").
2. Applicant proposes to procure and import various technical equipment, inter alia, including video cameras, camera lenses, audio and video cables and other supporting parts of the broadcasting equipment ("Broadcasting Equipment") classifiable under Chapter 85 or Chapter 90 of First Schedule of the Customs Tariff Act, 1975 on lease from various vendors. Applicant proposes to procure and import the said Broadcasting Equipment, inter alia, in the following manner -
a. Model A: In terms of Model A, the applicant will be taking the said Broadcasting Equipment from BS on lease basis. BS itself has a repository of equipment of various specifications which have been procured from manufacturers throughout the globe and are owned by BS. The said equipment are usually discontinued models of the camera and other broadcasting relating tools purchased by BS from various manufacturers;
b. Model B: Under Model B, the equipment are leased by the applicant from BS, which in turn has been hired by BS from the various manufacturers;
c. Model C: Under Model C, the applicant procures the said equipment from independent third party manufacturers/vendors directly.
3. At the time of import of the said Broadcasting Equipment, the applicant proposes to provide the following documentations with respect to the aforementioned Models in order to justify the value declared for the purpose of levy of Customs Duty:-
i. Chartered Engineer''s certificate certifying the description of the said equipment, price of the new equipment as in the year of its manufacture, current C.I.F. Value of the equipment, period of usage, etc.;
ii. Chartered Accountant''s certificate showing the current book value of the said equipment.
4. Applicant inter alia submits that in aforementioned Models of procurement, the Broadcasting Equipment will be procured by the applicant on lease basis temporarily and for a period for which they are required for the execution of contracts entered into between the applicant and its customers in India; that said Broadcasting Equipment falling under Chapter Headings 85 and 90 of the...
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