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2024 (1) TMI 190 - CESTAT KOLKATAValuation of imported goods - enhancement of transaction/assessable value, at the time of finalization of provisional assessment by inclusion of lumpsum payments under know how agreement, as being related to the imports made, as a condition of sale of equipments, imported under the supply agreement - whether the license fee and designing charges were a part thereof and whether charges of knowhow agreement were required to be added to the assessable value of the imported goods in terms of Customs Valuation Rules, 1988 – Rule 9(1)(c) and Rule 9(1)(e)? HELD THAT:- Viewed in the backdrop of the law as propounded by the Hon’ble apex court in the case of COMMISSIONER OF CUSTOMS (PORT), KOLKATA VERSUS JK CORPORATION LTD. [2007 (2) TMI 1 - SUPREME COURT], it is found that the contract, as entered into by the appellant with their overseas buyers are on identical terms. There was no obligation to bind the appellants to any post import act/activity and thus render it as a condition of sale for procurement of the imported goods. It is also noted that there is no technical know-how fees attributable towards post import related/associated acts and activities. Thereby no case arises for scaling up the assessable value with the inclusion of the royalty charges. In fact the preamble clause of the Confidentiality Agreement supra clearly brings to fore its purpose, completely unrelatable to any post import functioning. The order of the Tribunal in the case of TDT. COPPER LTD. VERSUS COMMISSIONER OF CUSTOMS, NEW DELHI [2000 (7) TMI 273 - CEGAT, NEW DELHI] relied upon by the adjudicating authority, is completely at variance as far as facts of the present case are concerned as Article 10 of the agreement therein provided for inclusion of various fees, charges and cost of technical services and were clearly a condition of sale. In the said case as relied by the learned Adjudicating Authority, the importer was required to pay US dollars 15 lakh towards engineering and servicing charges unlike in the present case where there is no such condition imposed on the appellant importer, by way of any of the above referred contracts entered into. In view of the findings that there is nothing in the contract entered into by the two sides, to impute the additional costs, towards the sale of imported goods or as a condition of sale, it is opined that the order of the learned Commissioner (Appeals), is without merits and is therefore liable to be quashed. The impugned order set aside - appeal allowed.
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