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2014 (2) TMI 65 - AT - CustomsValuation of goods - Enhancement in valuation - Mis declaration of goods - Demand of differential duty - Waiver of pre deposit - Held that:- prima facie the payment of royalty/licence fee is a condition or a pre-requisite for the sale/supply of the goods and hence they form part of the transaction value in terms of the provisions of the Rules - cost of technical know-how and payment of royalty is includible in the price of the imported goods if the said payment constitutes a condition pre-requisite for supply of imported goods by the foreign supplier. On the other hand if such payment has no nexus with working of imported goods, then such payment was not includible in the price of imported goods. In the instant case as per the contract entered into by the appellant with the foreign supplier the payment made as royalty/licence fee are for the rights conferred by the supplier for exploitation of the material contained in the imported goods and the payment have to be made in advance and only thereafter, the supply of the goods was made. Therefore the payment of royalty and licence fee was a condition pre-requisite for the supply of the imported goods - appellant has not made out any prima facie case in their favour for complete waiver of pre-deposit of the dues adjudged - Conditional stay granted.
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