TMI Blog2003 (10) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... such oils imported by the appellant from Castrol (UK) Ltd. and Castrol (Singapore) Petroleum Ltd. and other such companies. After considering the agreement entered into by the appellant for technical collaboration with Castrol (UK) Ltd., the Assistant Commissioner found that the royalty payable by the Indian importer to Castrol (UK) Ltd. in respect of imports made from that company was to form part of the value of such oils. In the absence of any specific figure in the agreement as to the amount payable, he derived at a figure of 6.71% of the CIF value, after taking into account the value of the oils imported and the royalty paid in 1993, 1994 and 1995. He, therefore, ordered addition of this value to the import. This order having been con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e product in India and it is requested that the UK company would part with the benefits of specialized technology, technical services and know-how to enable it to blend, produce and market Castrol products. In Article-2, Castrol (UK) grants to the Indian company the exclusive non-transferable licence to manufacture the Castrol products in India. Article 3 provides that Castrol (UK) shall transfer technology and technical services on a continuing basis either to the Indian company or to the representative of the company in the United Kingdom. Article 4 provides that the UK company shall recommend to the Indian company machinery, instruments and other equipments which are suitable for production of the Castrol products. Article 7 provides for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form part of the value of such products that the appellant imports and sells without any further process. In the absence of any clause in the agreement to this effect, the payment of royalty cannot be made applicable to products which will not be subjected to any process requiring the application of such technical knowledge. In other words, where there is no manufacture, any amount payable by the Indian company for assistance and knowledge for such manufacturing will not be includible. The Commissioner (Appeals) has not dealt with the contention of the appellant that the provisions of the collaboration agreement will have no application to the imported goods. It is not possible for this Tribunal to do so, in the absence of such basic materi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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