TMI Blog2003 (9) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... e of manufacture, fabrication, assembly and sale of fully automotive brake systems and related components. It entered into a Licence and Technical Assistance Agreement (LTAA) with Mando Machinery Corporation, Korea. As per the terms of the agreement the appellant was to pay total sum of US$ 4,50,000 to Mando, Korea as consideration for "the rights and technical information granted, disclosed and furnished by" Mando, Korea. The sum was to be paid in four instalments. The agreement also provided for payment of royalty at 3% of the net ex-factory sale price of the licensed product. Since we are not concerned in this appeal with the payment of royalty, it is not necessary to go into the details of the same. 3. As per definition of the term "T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order the Commissioner (Appeals) took the view that the appellant and exporter are related but the transaction value was not being rejected on the basis of relationship or mutuality of interest but she added technical licence fee to the assessable value of the goods imported by invoking Rule 9(1)(c) of the Customs Valuation Rules, 1988. 4. It is contended on behalf of the appellant that the appellant and its supplier are not related within the meaning of Rule 2(2) of the Customs Valuation Rules as conditions required for holding them related persons are not available in the facts of the case. We do not think it is necessary for us to go into this issue in this appeal since the Commissioner (Appeals) had rejected the transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices (supra). In the above case there was an agreement between the parties under which the appellants were given the right to manufacture and assemble in India licensed equipment for use in railway locomotives and rolling stock with the technical know-how supplied by the foreign collaborator. Appellant imported few sets of complete Air Brake distributors in CKD condition and otherwise. Revenue proposed to add technical know-how fee to the value of the goods imported. It was held that technical know-how relates to manufacture of the licensed product in India and that even if the brake distributors, door closer etc. could be assembled with the goods, it will not become licensed equipment in terms of the agreement in respect of which technical ..... X X X X Extracts X X X X X X X X Extracts X X X X
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