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2015 (11) TMI 1504 - CESTAT MUMBAIValuation of goods - Determination of assessable value - Inclusion of royalty amount for use of the trademark - Held that:- royalty is not related to the imported raw material; the royalty is related to the finished goods. Only because imported goods are contained in the finished goods, it cannot be said that royalty is related to the imported goods. The royalty is only paid for using the Trademark i.e. Sandvik on the products manufactured and sold in India. Therefore, we are of the view that the first condition of Rule 10 (1) (c) is not satisfied because the royalty is not related to the imported goods. - The Agreements with Sandvik Materials Technology and Sandvik Mining and Construction to whom the royalty is paid do not require the import of material from them only. The material may be procured other foreign suppliers or even locally. There is no condition that the Trademark can be used only if the appellant imports the raw materials from Sandvik. The appellants have made a statement that they have imported the goods from other suppliers and sourced locally too. This establishes that even the second condition under Rule 10 (1) (c), that royalty is paid as a condition of the sale of imported goods, is not met. In any case it is not as if the imported raw materials were sold by the appellant under the brand name Sandvik. There is no finding by Commissioner that the buyer had adjusted price of imported goods in the guise of enhanced royalty. Nor that the appellant was compelled to import raw material from Associate companies. Nothing in the Agreements indicate any binding to buy raw material from Associate companies. Rather, the Ld. Counsel submitted a statement showing use of raw material sourced locally as well as from unidentified origin. Therefore in the circumstances, the judgment of the Apex Court in the Ferodo case [2008 (2) TMI 12 - Supreme Court] is applicable in the present case. - invoice value is not required to be loaded by including the royalty - Decided in favour of assessee.
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