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2014 (6) TMI 300 - CESTAT MUMBAIValuation - Classification of payment made - determination of nature of payment for the purpose of inclusion - whether the payments made under the head “R&D fees” pertains to design and development of imported components as claimed by the Revenue or it has nothing to do with the imported goods as claimed by the appellant - Held that:- Held that:- In case there is a nexus in respect of both these payments to the imported components, what are the amounts that are attributable/apportionable to the imported goods. Since the payments are made on the basis of the invoices raised by the foreign supplier, these documents need to be examined carefully to see for what purpose the payments were made. Secondly, in respect of all these payments, prior approval of the RBI/Govt. of India was necessary. Therefore, the documents submitted to these agencies for remittance of foreign exchange needs to be examined and verified. As regards, the payments made for the drawings and designs, the invoices raised for the same and examination of the said drawings and designs so as to establish any nexus with the imported product, if need be, with the assistance of technical experts needs to be undertaken. If these exercises reveal any linkage with the imported goods, then the quantum of payment attributable to the imported goods have to be determined. From the orders passed by the lower authorities, no such study seems to have been undertaken nor the appellant has led any evidence to prove that the payments made has no nexus with the imported goods, except for a bald statement to that effect - Matter remanded back - Decided in favour of assessee for remand purposes.
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