CESTAT adjudicated a customs duty valuation dispute concerning ...

Customs Duty Valuation: Design Charges and Royalties Excluded from Transaction Value Under Section 14

May 9, 2025

Case Laws Customs AT

CESTAT adjudicated a customs duty valuation dispute concerning design and drawing charges and royalty payments. The tribunal determined that design and drawing charges for customer-specific textile machines and royalty payments unrelated to imported goods should not be included in the transaction value. The key legal finding was that neither Section 14 of the Customs Act nor Valuation Rules mandate inclusion of design costs or royalties that do not directly constitute a condition of sale. The tribunal emphasized that the design charges were for customized products and the royalty payments were not contingent on specific import transactions. Consequently, these charges could not be incorporated into the assessable value for customs duty calculation. The appeal was allowed, excluding design and drawing charges and royalty from the transaction value.

View Source

← Previous Next →

CESTAT adjudicated a customs duty valuation dispute concerning ...

Customs Duty Valuation: Design Charges and Royalties Excluded from Transaction Value Under Section 14

May 9, 2025

Case Laws Customs AT

You may also like:

The case involves a query regarding the classification of goods and services for GST purposes. The applicant sought clarification on the consideration charged for...

Valuation - inclusion of royalty charges in the assessable value - Royalty Charges is shown as Sales & Distribution overhead in the appellant’s books of account. This...

Valuation of imports from related suppliers and the inclusion or exclusion of royalty in the transaction value. The key points are: Rule 10(1)(c) of the Customs...

Valuation - third party inspection charges cannot be included in transaction value - Supreme Court held cost of transportation from place of removal to delivery excluded...

Valuation of imported goods - addition of royalty charges to value of imported goods in terms of Rule 9(1) (c) of Valuation Rules, 1988 and 10(1) (c) of the Valuation...

The issue pertained to the inclusion of demurrage charges in the assessable value for payment of customs duty under the Customs Valuation (Determination of Value of...

Valuation of imported goods - inclusion of royalty and the cost of advertisement incurred by the Appellant in India in assessable value - related party - The Tribunal...

The case pertains to the valuation of imported goods and the inclusion of royalty payments for determining the transaction value. The key points are: The transaction...

Stock Broking service - Valuation - inclusion of Misc. charges, turnover charges, Trade Guarantee Fund (TGF), Investor's Protection Fund (IPF), Stamp duty, Stock...

SC held that engineering and technical service charges paid to a local agent of a foreign supplier are includible in the assessable value of imported goods under Customs...

Royalty payments under a Licence and Technical Assistance Agreement were not addable to the transaction value of imported goods. The agreement covered transfer of...

Valuation - Rejection of Transaction value - Demand of differential Customs Duty - the reasons given for rejecting the transition value, is against the provisions of...

Dispute regarding valuation of imported goods under Customs Valuation Rules. Related parties involved, 10% loading applied to transaction value earlier. New Customs...

Valuation - inclusion of drawing, designing and engineering charges - The excise duty can be demanded on the same amount charged for drawing and designing, even if...

Valuation of re-treading materials – transaction value - addition of developing/designing charges of machines paid separately by customers should have been done after...

Quick Updates: