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2018 (4) TMI 1347 - AT - CustomsValuation - import of digital device (media) with contents - inclusion of royalty fee in the assessable value of goods imported - rule 10 of Customs Valuation (Determination of Value of Imported Goods) Rules 2007 - whether the assessable value, as enhanced by the original authority and upheld by the first appellate authority, is in consonance with Customs Valuation (Determination of Value of Imported Goods) Rules, 2007? Held that: - From the facts on record, it would appear that the import is not only of the media but also of the contents therein. For ease of conveyance, the contents are supplied in ‘digital beta tapes’ and the replication thereof merely enables distribution. The contention of the appellant that the assessable value should be restricted only to the media as declared by them, on their own computation, is not tenable. It, therefore, necessarily follows that the value of the goods must include a value for the contents. The royalties are related to the number of episodes. There is also no justification to conclude that the said royalty/licence fee may include consideration for reproduction or distribution rights. Extended period of limitation - suppression of facts - Held that: - reliance placed in the case of M/s Continental Foundation Joint Venture Sholding, Nathpa HP Versus Commissioner of Central Excise, Chandigarh-I [2007 (8) TMI 11 - SUPREME COURT OF INDIA], Where it was held that when the Revenue invokes the extended period of limitation under Section 11A the burden is cast upon it to prove suppression of fact - extended period not invocable. Confiscation - redemption fine - Held that: - The goods having been cleared in the normal course, the proceedings for recovery and confiscation were initiated much later. The imports were effected without any bond that could cover recovery of fine - redemption fine set aside - confiscation also set aside. Appeal allowed in part.
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