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2015 (1) TMI 884 - AT - CustomsValuation of goods - Inclusion of royalty amount - Receipt of technical know-how - Held that:- Adjudicating authority while passing order dated 13/09/2001 had examined the agreement at length and had come to the conclusion that the collaboration agreement had not influenced the price of the raw-materials imported by the appellant for undertaking further manufacturing in India. The said order also does not refer to any joint venture which revenue seeks to rely upon in their appeal. We have perused the terms and conditions of the collaboration agreement. From a reading of the clauses 8.01, 11.01 and 7.05, it is abundantly clear that royalty is required to be paid only on the value addition achieved by the appellant undertakes by the activities undertaken in India. It has nothing to do with the value of the imported raw-materials procured from the related foreign supplier or value of the imported components procured irrespective of origin. Thus, the contention of the Revenue that relationship has influenced the price of imports is not borne out from terms and conditions of the agreement which the appellant had entered into with the foreign supplier. This issue has been examined at length by this Tribunal in a number of cases and in particularly in the Foseco India Ltd. case (2014 (5) TMI 203 - CESTAT MUMBAI) wherein it was held that if the royalty is computed excluding the cost of imported material and is based on the indigenous value addition which clearly shows that the payments made by the appellant for the collaboration and consultancy services has nothing to do with the imports undertaken by the appellants and therefore, the same could not be included in the assessable value of the goods imported under Rule 9 (1) (c) & 9 (1) (e) of the Customs valuation Rules. - royalty paid by the appellant for the technical know-how received has nothing to do with the imports of raw materials. Consequently, the same is not includable in the assessable value of the goods imported - Decided in favour of assessee.
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