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2013 (9) TMI 462 - AT - CustomsValuation of imported goods - inclusion of Technical Know-how - Assesse entered into a technical know-how agreement with their principal in USA – The value of the imported goods including customs duties were clearly excluded – Held that:- In the absence of any evidence showing existence of a price adjustment between the cost incurred by the buyer on account of royalty/licensee fees by reducing price of imported items - it can- not be that such royalty payments were includible in the assessable value of the imported goods under Rule 9(1)(c)/10(1)(c) of the Customs Valuations Rules, 1988/2007. - Decision in Commissioner of Customs Versus M/s Ferodo India Pvt. Ltd [2008 (2) TMI 12 - Supreme Court] followed. It was seen that the assesse does not import any goods from the licensor/supplier of technical know-how at all – the assessing authority had recorded a clear finding that the assesse had submitted competitive quotations which revealed that the prices were based on commercial considerations and were comparable and the invoice values were not influenced by the assesse’s relationship with the principal - In view of such a clear and categorical finding by the assessing authority. Royalty and License Fee - The acceptance of the transaction value, the Customs authorities could not add the technical know-how fee in respect of the post-importation activities to the assessable value of the imported goods – COMMISSIONER OF CUSTOMS, NEW DELHI Versus PRODELIN INDIA (P) LTD. [2006 (8) TMI 186 - SUPREME COURT OF INDIA] - royalty and licence fee payments made, in respect of the goods manufactured and sold in India and not in respect of the raw materials/components imported and such payments being not a condition of sale of items to be imported, cannot be included in the assessable value of the imported goods under the Customs Valuation Rules – order set aside – Decided in favor of assesse.
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