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Commissioner of Customs, (Import) , Mumbai Versus Bekaert Industriesd Pvt. Ltd.

2016 (11) TMI 906 - CESTAT MUMBAI

Valuation - enhancement of value - royalty - goods imported from sister/related company for supply - Held that: - I find that there is no express/implied condition in the Agreement inferring that the appellant is under any contractual obligation to import the raw material for manufacturing the final products from the Licensor/Bekaert, Belgium the related supplier only. The Appellant is free to import the raw material from the licensor or any anybody else. The Licensee is liable to pay royalty to .....

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ter/related company; nothing was brought to notice that the agreement for technical know how between the importer respondent and their related person supplying the goods or finding that raw material needs to be purchased from the related person only. In the absence of any such restrictive Clause, the first appellate authority was correct in coming to a conclusion that the loading of value by an amount paid as royalty seems to be incorrect, is the correct decision and does not require any interfe .....

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nd that first appellate authority has not enhanced the value of goods imported by the importer respondent despite the fact that the goods were imported from their sister/related company for supply. 4. We find that the first appellate authority in paragraph no. 9, 10 & 11 as to why he is not agreeing with the enhancement of the value has recorded the following findings. "9. I find that the challenge to the Order is with reference to the findings of the adjudicating authority at Para 11 o .....

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e excluding duties and taxes only and not the landed cost of the imported components. On this basis, the Adjudicating Authority has held that Royalty Payment. is required to be added proportionately to the assessable value of the imported goods as per the formula reproduced below: % addition to the C.I.f value = total royalty payment in the year X 100 Total Assessable value of the imported goods 10. On going through the relevant Articles/clauses of the Trademarks License Agreement annexed to the .....

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amount of all invoices and credit notes issued by Licensee to its customers in connection with sales of Products manufactured by Licensee (the 'Gross Sales Value'), exclusive of costs of packaging, cost of carriage and insurance, duties and taxes, sale value of scrap and currency exchanged variances, On this basis, the Licensee as per Article 9 of the agreement is required to carry out computation of royalties as payment to the licensor in the manner stated in this article. 11. I find th .....

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