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TMI Blog2004 (5) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... duced in India is liable to be added to the value of components/parts imported from the collaborator in terms of Rule 9(1)(c) of the Customs (Valuation) Rules, 1988. There is also an issue as to whether service fee of 6000 DKK payable by the appellant to the collaborator for deploying technical assistance by competent personnel for servicing the WTG under annual maintenance contract is liable to be added to the value of imported parts/components under Rule 9(1)(c). The Deputy Commissioner passed an order dated 12-2-2001 wherein he has held that licence fee and service fee shall be added to the transaction value as per Rule 9(1)(c) of the Customs (Valuation) Rules, 1988. Appeal filed by the assessee was allowed by the Commissioner (Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Denmark has centralised Research and Development centre and was undertaking activities relating to technological innovation of WTG produced by the appellant in India. The appellant therefore submits that such licence fee payable in respect of every WTG produced by it is, in no way, relatable to the imports of parts/components. The agreement also stipulates foreign company to provide technical assistance for servicing the WTG manufactured by the appellant in India and in respect of which the appellant had entered into an Annual Maintenance Contract with third parties. Fee payable for such service to the foreign company cannot have any connection whatsoever with the import of components and parts for the manufacture of WTG. Learned Counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear that technical know-how fee relates to the manufacture of WTG in India. Service fee is also in respect of service of manufactured product, namely, WTG. Apart from the fact that the agreement for supply of parts/components was entered into much earlier to the technical licence fee agreement, we find that the technical licence fee was payable in relation to WTG manufactured in India by the appellant and not in respect of parts/components imported by the appellant. Licence fee is not payable as a condition of sale of the imported goods. Therefore, according to us, both the licence fee would not satisfy the required conditions under Rule 9(1)(c) of the Customs (Valuation) Rules, 1988 for being added while assessing t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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