TMI Blog2006 (12) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... e lower authorities including the royalty, in determining the transaction value of the imported goods. 2.The facts are : The petitioner, a firm engaged in import and distribution of feature films, in the course of its business, had entered into an agreement with London distributors for the import and distribution of the film "Web of Silence-AIDS". The goods were by filing bill of entry dated 21-4-2000 on payment of Customs duty as determined by the respondent, which included a sum of 12,500 US $ towards royalty. The inclusion of 12500 US $ in the value of the imported goods was disputed by the petitioner to the Commissioner and thereupon to the second respondent, who confirmed the order determining the assessable value by the lower auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of Rule 9 of these Rules. Rule 9 refers to the charges incurred for various types of services and stipulates addition in respect of the same whether actually paid or not. Rule 9(1)(c) provides that in determining the transaction value, there shall be added to the price actually paid or payable for the imported goods, - royalties and licence fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable. Rules have interpretative note and the interpretative note to Rule 9(1) is to the effect that royalties and licence fees referred to in Rule 9(1)(c) may i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly and without exploitation there is no purpose for importing the feature film. On the other hand, the purpose of importation of the film is only for exploitation. For the purpose of exploitation the charges is stated to 12500 US $. As per Rule 19(1)(c) the royalty and licence fee relating to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable. 7.In the case on hand, the petitioner had to pay not only the cost of movie materials, but also the royalty and the rights specified in the distribution agreement as a condition of sale, as without the right of exploitation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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