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2013 (9) TMI 504 - AT - CustomsAssessable value - department loaded the assessable value of equipment on account of technical know-how (licence fee) and design fee received from SWEC – They did not load the value on account of royalty or know-how fees - The value had been loaded under Rule 9(1)(c) and Rule 9(1)(e) of Valuation Rules – Held that:- The cardinal principle for loading the value under Rule 9 was condition of sale of imported goods by the buyer to the seller or the buyer to a third party to satisfy an obligation of seller to the extent that such payments were not included in the price actually paid or payable – Addition under Rule 9(1)(c) had to be of payments which constitute a condition prerequisite for the supply of the imported goods from the foreign supplier - Royalties/licence fees were to be paid to the foreign supplier of the equipments - For application of Rule 9(1)(e) there had to be a finding that although termed as royalty/licence fee, the payment was made or was to be made as a condition prerequisite for the sale of the imported goods and was in fact not royalty/licence fee. License fees – Royalty – Held that:- Revenue could not bring out that the licence fee or the royalty payment or any portion - The department could not bring out that royalty paid by the applicant had any nexus with the goods imported under the equipments contract subsequently – There was no direct or indirect role in the procurement and supply of equipment by the appellant and price thereof - The department could not show that the contract for procurement of goods or the equipment agreement was in pursuant to such condition in the engineering and technological agreement - They could not show that it was a condition for sale of equipment to the assesse – Order set aside – Decided in favor of assessee.
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