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2017 (11) TMI 551 - AT - CustomsValuation of imported goods - includibility - royalty - The claim of the appellant is that the goods such as raw materials for the manufacture of finished products as well as final products for trading were imported from other related group companies and not from AKZO Noble International BV Netherlands to whoever royalties are paid. Hence, it is their claim that the royalty cannot be held to be paid as a condition of the sale of goods by the principal. Held that: - the appellant as well as the suppliers of raw materials and finished goods are both subsidiaries of the principal in Netherlands - The question of adding of royalty amount to the assessable value of the goods imported from related persons was considered by the Hon’ble Supreme Court in the case of Matsushita Television & Audio (I) Ltd. Vs CC [2007 (4) TMI 5 - SUPREME COURT OF INDIA], where it was held that royalty in relation to the sale only includible in assessable value. Before adding the royalty amounts to the value of imported components, it is necessary for the department to examine both the technical assistance agreement as well as the pricing agreement. Before taking the final view in the matter, it is necessary to re-examine the matter of both license agreement as well as supply contract simultaneously, to see if the enhanced royalty was in the guise of adjustment of the price of components - matter remanded for reconsideration. Appeal allowed by way of remand.
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