9911796707
|
Home
Issues involved: Determination of assessable value of imported goods u/s Customs Valuation Rules, 1988; Review of order u/s 129D of Customs Act, 1962; Mutuality of interest between appellant and foreign collaborator; Addition of lump sum payment to assessable value; Loading royalty to declared assessable value.
Customs Valuation Rules, 1988: The Assistant Commissioner determined the assessable value of imported goods based on the gross invoice value from the foreign collaborator, finding no nexus between lump sum payment for licenses and royalty on end-product value. The Commissioner reviewed this order and directed a de novo adjudication, which was challenged by the appellant. Mutuality of Interest: The Commissioner found mutuality of interest between the appellant and foreign collaborator based on equity participation and board nominations, but the Tribunal held that mere interest is not sufficient for assessable value determination. The absence of evidence of mutual interest led to the conclusion that the appellant and foreign collaborator did not share business interests. Addition of Lump Sum Payment: The Department argued for adding the lump sum payment to the value of imported goods, citing a Supreme Court case. However, the Tribunal distinguished the case, stating that the payment for licensed information was unrelated to the imported goods' value, leading to the decision that the lump sum payment should not be added to the assessable value. Loading Royalty to Assessable Value: The Tribunal examined the agreement's provision for royalty on locally manufactured spare parts, concluding that imported parts sold as spares were not subject to royalty payment. Therefore, the price of imported parts sold as spares should not be loaded onto the assessable value. Conclusion: The Tribunal found the appellate order unsustainable and set it aside, allowing the appeal in favor of the appellant.
|
