TMI Blog2013 (4) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... R The appeal and stay application arise from Order-in-Appeal No. 10/MCH/AC/GVC/2013, dated 1-1-2013 passed by the Commissioner of Customs (Appeals), Mumbai-I, New Custom House. 2. The appellant M/s. BASF India Pvt. Ltd. are related to M/s. BASF SE, Germany. They had entered into the Technical know-how agreement with their foreign principal, for which they were paying royalty for use of technical know-how. The appellant was also imported certain raw material such as styrene, acrylates and chemicals from foreign principals, which were used in the manufacture of various plastic products manufactured by the appellant in India. Since the foreign supplier and the Indian importer were related, the transaction was referred to the Special Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue held that the royalty paid is relatable to the goods imported by the appellant and it is a condition of sale and accordingly, he allowed the appeal filed by the Revenue. Hence, the appellant is before us. 3. The learned Counsel for the appellant made the following submissions :- (i) The appellant imports and also locally purchases various raw materials from various sources for the manufacture of plastic products by them in India. They have obtained a technical know-how for the manufacture of the said goods in India from BASF Germany and are paying royalty for the technical know-how supplied on the basis of net sale price of the manufactured product in India. In the Technical know-how Agreement entered into by them with the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der No. A/766/2012/CSTB/C-I, dated 18-10-2012 in the case of SGL Carbon India Pvt. Ltd. - 2013 (290) E.L.T. 723 (T). (f) Order No. A/673/2012/CSTB/C-I, dated 30-10-2012 in the case of ABB Ltd. - 2013 (288) E.L.T. 296 (T). In all the above cases, a similar issue was involved and this Tribunal held that merely because the appellant has obtained the technical know-how from the foreign principal and pays royalty, in the absence of any specific provisions relating such royalty payment with supply of goods, it cannot be held that the transaction price is influenced by the relationship. Accordingly, he pleads for allowing the appeal. 4. The learned Addl. Commissioner (AR) appearing for the Revenue, on the other hand, reiterates the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procured from the Technical know-how supplier is less than 50% of the quantity required for manufacture of plastic product in India both in terms of quantity and also in terms of value. If that be so, it cannot be presumed that the relationship has influenced the transaction price or the payment of royalty has nexus with the supply or procurement of raw materials from technical know-how supplier or is a condition of sale for the supply of goods. 5.2 In the case relied upon by the Revenue in Matsushita Television Audio (I) Ltd. (supra), the facts were different. In that case, it was agreed between the foreign supplier and the Indian importer that the foreign supplier would assist the Indian importer in manufacturing the colour TV by se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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