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2013 (12) TMI 1089 - CESTAT MUMBAIValuation of goods - Royalty and licence fee paid by the importer - Import from assessee's foreign collaborator - Commissioner held that Technical Assistance and Licence Agreement dated 15-4-1996 did not have a clause whereby or wherein the importer-appellant is legally obliged to pay licence fee as a condition of sale of the imported goods - Held that:- royalty has to be paid @ 3% on net sale value of the rubber products manufactured and sold by the Licensee in India. Similarly, licence fee has to be paid @ 1% of the net sale value of the rubber products manufactured and sold by the Licensee bearing the trade mark. In other words, these payments are liable to be made in respect of the goods manufactured and sold in India and not in respect of the goods under importation. The goods under importation may be raw materials or components for the manufacture of the goods in India but the royalty and the licence fee are not payable on the imported goods but on the goods manufactured and sold in India. It is evident that the payments made by way of royalty or licence fee has nothing to do with the imported goods nor is it a condition of sale for the imported goods. As already discussed earlier, these payments are required to be made in respect of the rubber products manufactured and sold by the licensee in India. The provisions of Rule 10(1)(c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 are not attracted and, therefore, we do not find any infirmity in the order passed by the lower appellate authority. - Decided against the revenue.
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