2016 (3) TMI 887

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..... agreement is titled as a technical know-how agreement. The entire agreement is in respect of the finished goods to be manufactured by the appellant in their factory from the technical know-how received from parent concern. The said agreement does not talk about or restrict the appellant to purchase or procure raw materials only from the parent concern. Also the first appellate authority has not b .....

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..... ter was called out none appeared for the appellant. On perusal of records we find that the appeal could be disposed of in the absence of any representation from the appellant, accordingly we take up the appeal for disposal. 3. Heard the learned departmental representative and with his help went through the records. 4. The issue that arises for consideration is whether the raw materials impor .....

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..... ct to withholding tax if any on the product. As per the lower authority, the royalty payment is not related to the imported goods, and there is no condition of sale attached to the subject royalty payment. Hence royalty payment is not covered under Rule 9 of CVR, 1988. As per the adjudicating authority, there is no extra payment on and above the invoice price except royalty, hence the declared pri .....

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..... India vs. Commissioner of Customs, Bombay, 2000 (115) ELT 597 (SC), both technical know-how/licence fee and royalty are clearly includible in value under Rule 9(1)(c) of the CVR, 1988 an appeal was filed before the first appellate authority. 5. The first appellate authority allowed the appeal filed by the revenue setting aside the order of adjudicating authority, holding that the appellant had .....

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..... cure the raw materials only from the parent concern. In the absence of any such evidence, we are of the considered view that the loading of the value of by the amount of royalty paid by appellant is not in consonance with the law settled by the higher judicial fora. 7. Accordingly, in view of the foregoing and the facts of this case, we hold that the impugned order is unsustainable and liable t .....

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