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2016 (9) TMI 1089 - HC - CustomsValuation - demand of customs duty on license fee paid to the overseas licensor - payment of service tax on license fee - reverse charge mechanism - import of set top boxes - multi-channel down-linking - distribution and transmission of technology - HITS operator - consignments of set top boxes stored in customs bonded warehouse - clearance of set top boxes for home consumption avoiding appropriate payments of customs duty and giving wrong declarations - seizure - confiscation under Section 111(m) of the Customs Act, 1962 - provisional release of goods on furnishing bank guarantee - Held that: - it is only on the investigation being concluded and appropriate steps taken, that the authorities can issue a show cause notice and demanding amounts now styled as a Customs Duty on the licence fee. The petitioners are relying on the principle that what is really embedded and as claimed, are not goods but it is intellectual property services. They are relying on the payment of Service Tax and in that regard, the DRI could not have proceeded on the footing and in the facts and circumstances of the present case that there is a definite evasion. It is their duty to bring such cases of alleged evasion to the notice of the customs, which they have after the outcome of the investigation, whenever they are concluded. It is thereafter for the Commissioner of the Customs and all authorities under the Customs Act to take appropriate steps and measures. Provisional release of goods permitted - petitioners to furnish a Bond for securing differential duty payable, on the licence fees and Special Additional Duty so as to secure the redetermined value - petitioners to furnish a Bank Guarantee to the extent of 25 %, to secure the amount of the alleged differential duty, on licence fees - petition disposed off - decided partly in favor of petitioner.
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