TMI Blog1999 (11) TMI 860X X X X Extracts X X X X X X X X Extracts X X X X ..... M Toyota Ltd., New Delhi. Manufacture of passenger cars was taken up with Technical and Financial Collaboration of M/s. Daewoo Motors Korea. Joint Venture Agreement dated 9-7-1994 was concluded whereby Daewoo Corporation was to purchase shares to become majority equity holder of 51% paid in capital of DCM Toyota Ltd. On 10-5-1994, a Technical Assistance Agreement was entered into between the two whereunder 11.8 million US $ was payable to Daewoo in consideration of the licences granted to appellant. Over and above this lump sum payment, royalty at 3% was also payable to Daewoo on the Vehicles and Spares for a period of five years. Royalty on wholesale price of spare parts and components either manufactured or assembled by the appellant or p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elationship between the appellant and foreign collaborator was also examined. It was found that records do not establish any such influence relying on the decision of CEGAT in Maruti Udyog Ltd. v. C.C., Bombay. 3. On 16-12-1996, Commissioner of Customs reviewed the order of Assistant Commissioner under Section 129D of the Customs Act, 1962 and directed to file appeal before Commissioner (Appeals). An appeal was accordingly filed on 9-1-1997. Appellant herein contested the appeal on merits as also on the ground that review was beyond the record of proceedings. That appeal was disposed of by Order-in-Appeal No. 172/SVB /98, dated 27-10-1998. As per this order, the case was remanded for de novo adjudication after carrying out proper investi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for this case, Section 14(1) of the Customs Act, inter alia, provides that for the purpose of Customs Tariff Act whereunder duty of customs is chargeable on any goods by reference to their value, the value of such goods shall be deemed to be the price at which such or like goods are ordinarily sold in the course of international trade where the seller and buyer have no interest in the business of each other. So it is to be seen whether the appellant and their foreign collaborator have interest in the business of each other. Interest of one in the business of the other is not sufficient to discard the price at which the goods are sold for finding out the assessable value. There must be mutuality of interest. Nothing is in evidence to show t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the goods imported for assessment of customs duty. Though this point was not dealt with by the appellate authority in the impugned order, since this point took considerable time in the course of the argument, we think it necessary to refer to it. In the case before the Supreme Court contract was entered into between seller and purchaser for the sale of a Direct Reduction Iron Plant. One of the conditions was that purchaser should obtain licence from M/s. Midrex USA for use of midrex process and patent which was necessary to operate the plant. Without getting the licence from M/s. Midrex the plant could not be operated. So the purchase of the plant alone would not have given the purchaser any right to operate the same. In this situation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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