TMI Blog2014 (5) TMI 944X X X X Extracts X X X X X X X X Extracts X X X X ..... aule, Member (T) Shri V.S. Nankani and Anay Bauahatti, Advocates, for the Appellant. Shri M.S. Reddy, Dy. Commissioner (AR), for the Respondent. ORDER Heard both sides. 2. The appellant filed this appeal against the order-in-appeal No. 398/MCH/JC/GVC/2012, dated 8-6-2012 whereby the learned Commissioner (Appeals) has set aside the lower adjudicating authority s order and allowed the appeal of the department. 3. Briefly stated facts of the case are that the appellant is related with the supplier viz. M/s. Renault s.a.s France in terms of Rule 2(2) of the Customs Valuation Rules, 2007 (herein referred to CVR). Accordingly, the case for valuation was registered with SVB, NCH, Mumbai for investigation. The appellant vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n is that the same was payable on the sale of spare parts. 4.3 So far as a royalty of 100 Euros per car is concerned the contention is that the same would have become payable as per trademark agreement. The contention is that no payment is made by them. 4.4 As regard payment of 15 million paid as fees, the contention of the appellant is that these payments were made in respect of service set out at Section 3. The contention of the appellant is that the agreement is fixed to eight installments of 18,75,000 each and that there was no co-relation between the fees and import of parts and components. 5. The learned A.R. reiterated the findings of the Commissioner (Appeals). 6. We have carefully considered the submissions and perused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cence Agreement, the license i.e. Respondent shall pay to the licensor (supplier) in the form of running royalty of 100 Euros for each and every licensed vehicle manufactured in the territory as per Section 10.1 of the Technology Licence Agreement. Thus, there is no doubt that the supplier has imposed a condition of sale of the imported goods or the importer that he shall pay Euro 100 to the supplier after assembling/manufacturing of the vehicle. It appears that the Respondent s contention that the royalty is payable on the production of 1,40,000/- licensed vehicle and the same has not been paid so far as they have manufactured 46,000 vehicles has been accepted by the adjudicating authority. The above contention does not appear to be correc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- It is observed that the services and additional services rendered by the supplier to the importer are laid down in Section 3 and 4 of the Agreement. This Section defies the scope of the services rendered as per Section 4 and Section 3(1) that the term services shall include Engineering/Technical Assistance and Training Services rendered by the supplier to the importer until the start of commercial production and for a period of 1 year. That the payment of fee referred to in Section 7 is nothing but the licence fee payable/and paid for Engineering and Technical Assistance rendered by the supplier to the importer is required to be added to the price of the imported goods as per Explanation to Rule 10(7)(c) even if such goods may be subjec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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