MICROSOFT INDIA (R & D) PVT. LTD. Vs. COMMR. OF CUS. & C. EX., HYDERABAD-IV
LAWS(CE)-2015-5-47
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on May 25,2015

Microsoft India (R And D) Pvt. Ltd. Appellant
VERSUS
Commr. Of Cus. And C. Ex., Hyderabad -Iv Respondents

JUDGEMENT

G. Raghuram, J. (President) - (1.)The appellant is the assessee and is aggrieved by the impugned order dated 25 -5 -2009 passed by the Commissioner of Customs & Central Excise, Hyderabad -IV. The impugned order confirmed customs duty demand at the appropriate rate on capital goods of the appellant shared with another company, M/s. Microsoft Global Services Centre (India) Private Limited (MGSCI). The impugned order held that the rate and valuation of the assets shall be as on the commencement of sharing of capital goods and confirmed the liability in accordance with provisions of Sec. 28ABof the Customs Act, 1962, payable on the date of commencement of sharing. In 2006, the appellant applied to the Assistant Commissioner of Customs, Hyderabad IV for sharing of common assets etc. with M/s. MGSCI, which is a group company, for sharing of its assets in the premises. Vide order dated 24 -4 -2006, the Assistant Commissioner conveyed the permission granted by the Commissioner with regard to sharing of specified equipment under Circular No. , dated 12 -10 -2001.
(2.)In course of time, the business of the appellant and of MGSCI expanded. The appellant occupied another premises also. As there was vacant space available in the premises occupied and owned by the appellant along with certain common facilities on 13 -6 -2008 the appellant again applied for sharing of specified assets with MGSCI, a group company.
(3.)On 5 -6 -2008, the appellant and M/s. MGSCI entered into a lease agreement whereby the appellant leased a specified extent of space in 2nd and 3rd floor of its premises to M/s. MGSCI together with assets on a monthly rent.
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