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2014 (1) TMI 367 - CESTAT MUMBAIDetermination of assessable value of the goods imported - Import of automobile parts - Application of Rule 9(l)(c) - Held that:- payments of royalty/licence fees was entirely relatable to the manufacture of brake liners and brake pads (licensed products). The said payments were in no way related to the imported items. In the present case, no effort was made by the Department to examine the pricing arrangement. No effort was made by the Department to ascertain whether there exists a price adjustment between cost incurred by the buyer on account of royalty/licence fees payments and the price paid for imported items. No effort was made by the Department to ascertain enhancement of royalty/licence fees by reducing the price of the imported items. In the circumstances, we find no infirmity in the impugned judgment of the Tribunal. In this case, the Department has gone by TAA alone. On reading TAA in entirety, we are of the view that there was no nexus between royalty/licence fees payable for the know-how and the goods imported for the manufacture of licensed products. The Department itself has invoked Rule 9(1)(c) - Following decision of Commissioner of Customs v. Ferodo India Pvt. Ltd. [2008 (2) TMI 12 - Supreme Court] - Decided in favour of assessee.
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