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2019 (10) TMI 459 - CESTAT MUMBAIValuation of imported goods - import of content of Digi Beta Tape through Courier - inclusion of license fees/ royalty payable in assessable value - Revenue was of the view that these amounts paid by the appellants to the foreign production houses were to be added to the assessable value - Rule 10(1)(c) of Customs Valuation Rules. HELD THAT:- There can be no dispute about the fact that all the payments made by the buyer to the seller as condition of sale of goods except the payments towards right to reproduce will form the part of the assessable value to be determined for the purpose of payment of Customs duty. On perusal of agreement, it is found that the payments made by the appellants are towards the distribution rights and are clearly payable as condition of sale of the said goods. All the three agreements clearly lay down that entire payment of the ‘License Fee” or “Guarantee” shall be made by the Distributor to the licensor at the time of “Notice for Initial Delivery”, and only on the receipt of the entire payments, the process of the supply of the initial materials in terms of the said agreement shall commence - In view of Interpretative Note 2 to Rule 10(1)(c), reproduced above such amounts paid towards distribution rights are to be included in the assessable value of the imported goods if they are charged as condition of sale of the goods. The issue of inclusion of the License Fee in terms of Distributor Agreement, had been settled by the Apex Court in the decision in case of ASSOCIATED CEMENT COMPANIES LTD. VERSUS CC [2001 (1) TMI 248 - SUPREME COURT]. Thus, there are no merits in the submissions made by the Appellant that at the relevant time there was any confusion prevailing with regards to inclusion of such value - Hence by not including the value of the License Fee or Guarantee paid by them under the agreements referred above relating to import of the Digi Beta Cam, with the movies on them they have misdeclared the said goods in terms of the value and have rendered them liable for confiscation under Section 111(m) of Customs Act, 1962 - Since the goods have been held liable for confiscation under Section 111, the appellant for their act of misdeclaration are liable to penalty in terms of Section 112(a) of the Customs Act,1962 - redemption fine also upheld. Appeal dismissed - decided against appellant.
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