TMI Blog2013 (3) TMI 668X X X X Extracts X X X X X X X X Extracts X X X X ..... includes payment of lump sum royalty amount of US $ 2,00,000 over a 20 years period. Since both the appellant and M/s. Orochem Technologies Inc., USA were related in terms of the provisions of Valuation Rules, 2007, the issue of valuation of the imported raw materials and components and the prospect and feasibility of inclusion of royalty amount was decided by the learned Additional Commissioner of Customs vide order-in-original No. 275/ADC/SVB/BN/2010-11, dated 25-10-2010 whereby the learned Addl. Commissioner held that the royalty was not includible in the value of the imported raw material and components and accepted the transaction value under Section 14(1) of the Customs Act, 1962. Aggrieved by the same the department filed an appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... incorporated in the agreement. The contention is that the reliance placed by the learned Commissioner on the decision of Hon ble Supreme Court in the case of Matsushita Television and Audio (India) Ltd. v. C.C. - 2007 (211) E.L.T. 200 is not relevant to this case since the facts and circumstances are different. The contention is that Rule 10 of CVR, 2007 does not provide for inclusion of royalty paid or payable in all cases. The inclusion of royalty or any other payment is warranted only when the conditions of Rule 10(1)(c) or (e) are fulfilled. The appellant has also placed reliance on the decision of the Hon ble Supreme Court in the case of Commissioner of Customs v. Ferodo India Pvt. Ltd. - 2008 (224) E.L.T. 23 (S.C.). 4. The learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seller are condition of sale of essential ingredients in both the rules is condition of sale. The term used in Rule 10(1)(c) and 10(1)(e) of Customs Valuation Rules, 2007 is Condition of Sale . As per Oxford Dictionary condition means Stipulation or something on fulfilment of which something else depend . Meaning thereby things on whose fulfilment or other things are made to depend. The department could not show that the royalty which they wanted to add to the assessable value is a condition pre-requisite for sale and the assessable value is not a true transaction value in terms of Section 14(1)(a) of the Customs Act, 1962. Hon ble Supreme Court in the case of Ferodo India Pvt. Ltd. (supra) held that Under Rule 9(1)(c), [now Rule 10(1) (c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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