TMI Blog2016 (6) TMI 811X X X X Extracts X X X X X X X X Extracts X X X X ..... lly and arbitrarily. This is not acceptable to law. Therefore, order of both the authorities suffers from legal infirmity. - Matter remanded back for fresh decision. - C/41069/2015 - FINAL ORDER NO. 41006 / 2016 - Dated:- 15-6-2016 - SHRI D.N. PANDA, JUDICIAL MEMBER AND SHRI B. RAVICHANDRAN, TECHNICAL MEMBER For the Appellant : Shri S. Murugappan, Adv. For the Respondent : Shri K. Veerabhadra Reddy, JC (AR) ORDER PER D.N. PANDA: Appellant being aggrieved by the order of adjudication dated directing royalty, lump sum payment (license fee) and technical assistance fee paid to the supplier (related party) shall be includible in the import value of the goods, approached the learned Commissioner (Appeals) for redressa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, these raw materials and technical-knowhow are a paired phenomenon, which cannot be separated thus creating the condition necessary for the addition of the value of the consideration under Rule 10 (1) (c)/10 (1) (e) ibid. This shows that the imported goods have nexus with the lump sum/royalty paid for the technical-knowhow and the technical fee and the existence of condition of sale. The appellant has split the value of these goods and have categorized them as value of physical goods and as technical-knowhow/technical fee. 2.2 It is further explained by the learned counsel that Rule 10 (1) (c) has a limited scope and confined to the imported goods without being expanded to finished good made out of such imported goods. Therefore, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perly bringing out relevant clauses that is contributory to the valuation sought to be made in terms of Rule 10 (1) (c) of the Valuation Rules. In absence of proper clause of the agreement being depicted in the order and without demonstrating the manner how such clauses warrant valuation to be made in terms of that Rule arbitrary valuation has been made. In stead of objective evaluation of the agreements and thread bare examination of any evidence on record to invoke above Rule the authority drew inference superficially and arbitrarily. This is not acceptable to law. Therefore, order of both the authorities suffers from legal infirmity. The appellate authority committed grave error in law in approving the adjudication order whimsically. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd conclusion drawn without being subjective. 7. Aforesaid guidelines are not exhaustive but are mere examples. If the authority has any material to be used against the appellant that should be brought to the notice of the appellant and considering reply, reasoned and speaking order shall be passed. It should be remembered that the format of the agreement shall not be decisive but substance of the transaction shall be decisive. The substance should be backed by tangible evidence and demonstrated from the facts and circumstances of the case. 8. Having understood that the special valuation issues affects several consignments due to provisional assessment, re-adjudication be completed by 29th July, 2016 without any delay. 9. The appel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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