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2014 (8) TMI 47 - CESTAT CHENNAIValuation of goods - Inclusion of License fees and royalty - Held that:- It is clearly evident from the agreement that Article 3 provides transfer of technology relating to Float Process. It has no relation to import of capital goods. In fact, the agreement relates to process, know-how, techniques of manufacturing of Float Glass. In terms of Rule 9(1)(C) of the CVR, 1988, the royalty fee and licence fee must be related to the sale of capital goods as a condition of importation of goods, which the appellant is required to pay directly or indirectly as addition of importation of goods. Decision in the case of Matsushita Television & Audio (I) Ltd. [2007 (4) TMI 5 - SUPREME COURT OF INDIA] distinguished wherein it was held that, Royalty is includible in the assessable value of the imported capital goods, as the said agreement clearly includes the cost of imported goods. In the present case, there is no such clause mentioned in the agreement. Further, there is no indication in the agreement that SGV, France, will assist the appellant in respect of the imported capital goods or otherwise in any manner. In other words, SGV, France would assist the appellant in respect of manufacturing process of Float Glass - licence fee and royalty paid by the appellants to their collaborator M/s. SGV, France, would not be added to the value of the imported capital goods - Following decision of Toyota Kirloskar Motor Pvt. Ltd. [2007 (5) TMI 20 - SUPREME COURT OF INDIA] - Decided in favour assessee.
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