2005 (9) TMI 18 - AT - Customs

Valuation(Customs)- No restraining clause on importers in India to import capital goods from third party in said agreement under which technical know how- Technical knowhow and royalty not included in assessable value in second hand capital goods.

Summary

The Appellate Tribunal CESTAT, Mumbai ruled that technical know-how fees and royalty paid to a US company for manufacturing plant setup in India should not be added to the assessable value under Valuation Rules, 1988. The decision was based on previous judgments and the absence of a restraining clause in the agreement. The order of the Commissioner (Appeals) was set aside, and the appeal was allowed.