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2018 (1) TMI 1025 - AT - CustomsValuation - royalty/license fees - includibility - Rule 10(1)(c ) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 - trademark licence fee as a condition of sale of goods that the respondent got from RBSOIL, which RBSOIL got from Luxotica, Itlay. This amount was not being directly paid to Luxotica, Itlay, but being paid to IBSOIL. Held that: - One of the conditions for addition of value under Rule 10(1)(c ) is that payment of licence fee should be “condition of the sale of the imported goods”. This aspect has been examined in great detail by the Original Authority. Relying on the terms of the agreement, it was concluded that the respondent accepted and acquired exclusive distributorship rights for the sale of the imported eyewear products with the express approval of the seller of those goods “Luxottica” subject to the terms and conditions mentioned therein - the payment made by the respondent for the right to distribute or resell the imported goods should not be added to the price paid or payable for such goods, if such payments are not a condition of the sale for export to the country of importation of the said goods - amount not includible. Appeal dismissed - decided against Revenue.
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