TMI Blog2012 (12) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... lm but only the cost of media in which the film is recorded and the same is not the value of the goods imported. As decided in COMMNR. OF CUSTOMS EXCISE, NEW DELHI VERSUS M/S. LIVING MEDIA (INDIA) LTD. [2011 (8) TMI 41 - SUPREME COURT OF INDIA] royalty is paid for the supply of the goods as a condition of sale has to be necessarily included in the transaction value for the purpose of levy of customs duty - the appellant has not made out any case for complete waiver of pre-deposit thus directed to make a pre-deposit of Rs. 80 (Eighty) lakhs within a period of eight weeks and report the compliance. - C/5/2011 - S/334/2012-WZB/C-I(CSTB) - Dated:- 5-3-2012 - S/Shri Ashok Jindal, P.R. Chandrasekharan, JJ. REPRESENTED BY : Shri S.K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . As per the agreement, the appellant were granted exclusive licence under copyright to manufacture, advertise and promote, sell and distribute programmes in the format and language specified therein for home entertainment exhibition (Video Rights). In consideration for the licence for the video rights, the appellant was liable to pay to the foreign supplier royalty computed as a percentage of their sales receipts. From the balance sheet of the appellant-firm for the years ending 31-3-2006, 2007 and 2008, it was noticed that the appellant had shown royalty expenses at Rs. 1,25,73,398/-; Rs. 2,37,14,544/- and Rs. 1,65,25,364/- for the years ending 31-3-2006, 31-3-2007 and 31-3-2008 respectively. It was also noticed that the appellant had rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the provisions of Section 28(1) of the Customs Act along with interest thereon under Section 28AB by holding that the royalty paid by the appellant to the foreign suppliers is to be included in the value of the media imported under the provisions of Rule 9(1)(c) of the Customs Valuation Rules, 1988 and Rule 10(1)(c) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007. He also held that the goods imported having a total assessable value of Rs. 5,28,13,306/- is liable to confiscation under the provisions of Section 111(m) of the Customs Act, 1962 and imposed a penalty of Rs. 2,80,63,195/- on the appellant under Section 114A of the said Customs Act. Hence the appellant are before us. 3. The learned advocate appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dible in the price of the goods imported under Rule 9 of the Customs Valuation Rules. He also refers to the stay order passed by this Tribunal in the case of Star Entertainment P. Ltd. vide Stay Order Nos. S/591-592/2011/CSTB/C-I, dated 14-12-2011 wherein, in a similar situation, the Tribunal had directed the appellant (in that case) to make a pre-deposit of 50% of the differential duty involved and prays that in this case also, the appellant be put to terms. 5. We have carefully considered the rival submissions. In the instant case it is clear from the agreement between the foreign supplier and the Indian importer that the Indian importer has to pay royalty towards the Video Rights of the imported goods. The imported goods are master D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value for the purpose of levy of customs duty. 6. In a more or less identical set of facts, this Tribunal, in the case of Star Entertainment P. Ltd., directed the appellant therein to make a pre-deposit of 50% of the differential duty following the Apex Court s decision in Living Media India Ltd. s case. Therefore, in the case under consideration also, we are of the view that the appellant has not made out any case for complete waiver of pre-deposit of the dues adjudged. As against the total demand of Rs. 1,85,63,704/- the appellant has paid an amount of Rs. 25,00,000/- at the time of investigation and balance amount of Rs. 1.60 crore (approximately) is pending recovery from the appellant towards differential duty. Accordingly, we direct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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