2009 (8) TMI 986 - AT - Customs

Summary

The Appellate Tribunal CESTAT CHENNAI, in the 2009 (8) TMI 986 case, heard an appeal regarding the inclusion of royalty and technical know-how fees in the declared value of machinery imported from Spain. The Commissioner (Appeals) had previously ruled in favor of including these fees under Rule 9(1)(c) of the Customs Valuation Rules, 1988. However, after a thorough review of the License Agreement between the Indian joint venture and the Spanish company, the tribunal found that the payments were not related to the imported goods but rather to the final products to be manufactured in India. As such, the tribunal determined that the royalty and technical know-how fees should not be included in the declared price of the imported goods. The impugned order was set aside, and the appeal was allowed. The operative part of the order was pronounced on 5-8-2009. The judges presiding over the case were Ms. Jyoti Balasundaram and Dr. Chittaranjan Satapathy. The appellant was represented by Shri Murugappan, Advocate, while Shri T.H. Rao, SDR, appeared for the Respondent.