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2012 (12) TMI 353 - AT - CustomsTransaction value for the purpose of levy of customs duty - whether royalty and licence fees is to be included in the assessable value? – Held that:- The agreement between the foreign supplier and the Indian importer states that the Indian importer has to pay royalty towards the ‘Video Rights’ of the imported goods, i.e. master Digi beta tapes containing the feature films. From the master tapes, the appellant makes VCDs/DVDs of the films and sells the same in the domestic market on which royalty is payable to the foreign supplier. The value declared at the time of importation is not the cost of film but only the cost of media in which the film is recorded and the same is not the value of the goods imported. As decided in COMMNR. OF CUSTOMS EXCISE, NEW DELHI VERSUS M/S. LIVING MEDIA (INDIA) LTD. [2011 (8) TMI 41 - SUPREME COURT OF INDIA] royalty is paid for the supply of the goods as a condition of sale has to be necessarily included in the transaction value for the purpose of levy of customs duty - the appellant has not made out any case for complete waiver of pre-deposit thus directed to make a pre-deposit of Rs. 80 (Eighty) lakhs within a period of eight weeks and report the compliance.
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