Chirag imported a machine from China at 100 lakh in May, 2023 on payment of all duties of customs. The said machine was exported (sent back) to the…

Chirag imported a machine from China at 100 lakh in May, 2023 on payment of all duties of customs. The said machine was exported (sent back) to the supplier for repairs in August, 2023 and re-imported without any re-manufacturing or reprocessing in March, 2024 after repairs as per the terms of warranty. The repairs were carried out free of cost but 50% of the cost of material was to be borne by Chirag. Following details are available in relation to the repairs: Particular Amount Fair cost of repair (excluding cost of material) 4,00,000 Cost of material used in repairs 5,00,000 Actual insurance and freight paid towards send back to supplier 1,00,000 Actual insurance and freight paid toward re-importation 1,20,000 Value for the purpose of levy of customs duty for such repairs under section 20 of the Customs Act, 1962: