TMI Blog2004 (12) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Mitsubishi Motor Corporation, Japan (M/s. Mitsubishi in short) on 1-11-1995; that the said Agreement was split into two by another Agreement dated 31-3-1998; that they also entered into another Agreement 'Component Supply Agreement' dated 16-11-1995; that the total investment on their plant and machinery was Rs. 153.10 crores; that out of this, capital goods imported from M/s. Mitsubishi were to the extent of Rs. 10.20 crores, mainly in the form of jigs and fixtures; that all other capital goods were either purchased from indigenous sources or were imported from various other foreign suppliers; that the Deputy Commissioner, under Order-in-Original dated 21-2-2003 has held that (i) the Appellants are not related to M/s. Mitsubishi Motor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shi that they have received the lump sum fees from the Appellants as the payment of the grant of license to them for manufacturing "Lancer" in India and that the components are supplied on the basis of commercial prices or fair market value; that it has also been mentioned in the said Certificate that the Appellants are engaged in the localization of many components and sub-assemblies right from the first year and, therefore, their supply portions are only limited to those that have not yet been localized in India. The learned Advocate, further, submitted that in the License and Technical Assistance Agreement and Component Supply Agreement, there is absolutely nothing to indicate that the payment in question is in any way related to the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the transfer of the technical information and (3) the third instalment within 60 days after the commencement of commercial production or by 4-1-2000 whichever is earlier. He contended that thus the said lump sum was payable irrespective of and totally independent of any import of components and parts from M/s. Mitsubishi; that the Appellants' liability to pay the said sum for getting the license and technical assistance did not in any way depend upon import of any parts, components and capital goods from M/s. Mitsubishi; that the lump sum payment did not in any way relate to the imported goods nor the said payments were made as a condition of sale of the impugned goods; that there was absolutely no nexus of any nature between the said lum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s India Ltd. v. C.C., 2004 (163) E.L.T. 333 (T). 6.Countering the arguments, Shri S.M. Tata, learned S.D.R., submitted that the Component Supply Agreement entered into between the Appellants and M/s. Mitsubishi clearly makes a reference to Technical Assistance Agreement and as such there is a nexus between the payment of lump sum to M/s. Mitsubishi and import of the components by the Appellants from M/s. Mitsubishi; that assembly is the integral part of the manufacture of licensed vehicles for which lump sum payment has been made by the Appellants; that as per Article 1 of the Component Supply Agreement, "Components" mean any and all components, parts and accessories used in the manufacture of a Manufactured Model, and "MMC Components" me ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in determining the transaction value, royalties and licence fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that royalties and fees are not included in the price actually paid or payable, shall be included in the price. For the purpose of including the licence fees in the value in terms of Rule 9(1)(c), it is pre-requisite that (i) the licence fees is related to the imported goods; (ii) the importer is required to pay the said fees, directly or indirectly; and (iii) the importer is required to pay the fees as a condition of the sale of the goods imported by him. In all the decisions of the Larger Bench of the Tribunal, relied up ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
