Home Case Index All Cases Customs Customs + AT Customs - 2015 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (2) TMI 955 - AT - CustomsValuation of goods - Inclusion of amount of royalty on the imported goods - Held that:- There is a contradiction in the stand taken by the Customs as far as inclusion of royalty on the goods imported. On the one hand it is held that if the foreign supplier is not related, royalty is not includable whereas if the foreign supplier is related royalty is includable. Rule 10 of the Customs Valuation Rule, 2007 does not make any distinction on the basis of relationship between the parties for its application and the said Rule applies uniformly irrespective of whether the supplier and the importer are related or not. Further Rule 10 (1) (c) specifically excludes the charges for the right to reproduce the imported goods in the country of importation as per the interpretative notes given in the schedule thereto. The World Customs Organization has also interpreted the term "right to reproduce the imported goods" as reproduced in para 2 above and as can be seen from the clarification given by the WCO, it would also include animal or plant species which are reproduced from the imported goods. More or less identical matter was considered by this Tribunal this Tribunal came to the conclusion that royalty paid for the reproduction of imported seeds in India cannot be added to the assessable value of the seeds. The same ration would also apply to the facts of the present case. - royalty paid by the appellants herein for the reproduction of the imported clumps in India cannot be added to the value of the clumps - Decided in favour of assessee.
|