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2017 (3) TMI 760 - AT - CustomsMethod of Valuation - import of CD/DVDs - deductive value or computed value - related party transaction - royalty - inclusion of royalty in assessable value - Held that: - if valuation cannot be arrived at under normal provisions of Section 14 and then further under Rules 3, 4 and 5 of CVR, 2007, then valuation of imported goods are to be determined under Rule 7 or under Rule 8, and where valuation is not determined even under Rules 7 and 8, then valuation is to done under Rule 9 of CVR, where it is called Residual Method. The Deductive value is to be arrived at by considering the unit price at which the goods were sold to institutional buyers, as these sales satisfy the provision of Rule 7 of CVR, 2007, which state that value of imported goods shall be based on the unit price at which such goods or identical/similar goods are sold in the greatest aggregates quantity to unrelated persons in India. Once this unit price at which the imported goods were institutionally sold has been decided, the deductive value is to be arrived at after giving the deductions mentioned in the Rule 7. With this finding the matter deserves to be remanded to the original adjudicating authority. Whether duty is liable to be paid on the royalty? - Held that: - the royalty paid and payable for the goods imported through link is to be taken into account for the purpose of assessable value. However, there is premise that the goods imported through link, that is through internet, which are called download and which may be sold by the importer appellant cannot be subjected to the Customs duty. The downloads imported through link or through internet are not the subject matter of present proceedings - For the present proceedings when downloads through internet are not the subject matter no comments of the Tribunal on the same are called for. Appeal allowed by way of remand.
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