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2017 (3) TMI 996 - AT - Central ExciseValuation - royalty - whether royalty charges towards supply of design, drawing and technical know how by FIPL to AVTEC in the manufacture of power units by AVTEC is to be included in assessable value or not? - Held that: - Power unit is one of crucial and important main components of the motor vehicles. The same has to be made as per the exact design, specification and technical requirement suitable for use in the motor vehicles - In terms of the agreement dated 1.8.2006 between AVTEC and FIPL, it is very clear that the power units are to be made in accordance with the specifications, engineering drawings and other technical information provided by FIPL to AVTEC. It is clearly mentioned that FIPL shall provide free of charge of necessary drawings, design, process sheets, equality check sheets and other technical support required for manufacturing and supplying power units by AVTEC. The value of such design, drawing and technical know-how, should form part of the assessable value of power units manufactured and cleared by AVTEC to FIPL - However, the quantification has to be done on factual and rational basis. Extended period of limitation - Held that: - AVTEC are not in the picture with reference to royalty payment for the whole vehicle by FIPL to FORD, USA in terms of the agreement between these two parties. In such situation, it is not correct to allege that AVTEC intentionally suppressed or mis- represented any facts relating to additional considerations to be added in the value of power units - extended period not invocable - penalties also set aside. Appeal disposed off - decided partly in favor of appellant-assessee.
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