TMI Blog2017 (2) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... be termed as royalty paid for the imported goods. Appeal dismissed - decided against Revenue. - Customs Appeal No.53091 of 2014 - C/A/56373/2016-CU[DB] - Dated:- 15-12-2016 - Shri Ashok Jindal, Member (Judicial) And Mr. V Padmanabhan, Member (Technical) Dr. S.R. Sheoram, AR for the Appellants Shri S Vasudevan, Advocate for the Respondent Per Ashok Jindal Revenue is in appeal against the impugned order. The facts the case are as under:- 1. Special Valuation Branch, New Customs House, New Delhi took up the case of valuations of goods imported by M/s. SICPA India Pvt. Ltd., 308-312, Mercantile House 15, KG Marg, New Delhi -110001- (IEC No. 0292005407 and PAN AADCS6121L) (hereinafter referred to as the Import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was held that the transaction value is to be enhanced by 5% on account of royalty being paid by the respondent to the related party for the goods manufactured in India. The said order was challenged by the respondent before the learned Commissioner (Appeals) who set aside the order of enhancement of providing technical know-how and for the said technical know-how, the appellant has paid lump sum of SFr.525,000.00/- (five hundred and twenty five thousand swiss francs) to the foreign party and they were given the rights to use the license and to pay the royalty at the rate of 5% on the end sale of all the products and parts thereof manufactured and sold in India. Therefore, it is submitted that the respondent is paying royalty to their forei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice President (Technical) and informed that the prices are finalized after detailed negotiation from time to time considering various factors like market condition etc. The sale and purchase of goods were made on principal to principal basis at arm's length and independent of any interest. No extra consideration except the price of goods has been charged. The goods supplied are purely based on international trade usage and the price offered is the sole consideration for the sale of goods. 8. In order to examine values of imported goods and compare the values with the value of Identical/ Similar goods, this branch asked the Importer to submit as to whether the Foreign Suppliers are supplying any identical/similar goods to any other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds From the said provisions, it is very much clear that royalty under the said Rule can be included in the assessable value if in case of imported goods, it is the condition of sale. And as per the explanation, royalty would be includable in the case even after the imported goods have undergone the process after importation of said goods. In this case from the facts of this case, it is clear that the respondent is paying royalty to their foreign supplier for the manufacturing of goods under their license in India. The same cannot be termed as royalty paid for the imported goods. Same view was taken by this Tribunal in the case of Brembo Brake India P Ltd (supra) wherein this Tribunal has observed as under: And the explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
