2007 (12) TMI 191 - AT - Customs

Includibility of fee paid for technical know-how and assistance to foreign supplier in assessable value of imported goods - there was no relation whatsoever between the imported goods and payment of the technical licence fee - Further it was not a condition of sale of the imported goods that the appellants should make use of the supplier s technical know-how only held that such technical know-how fee is not includible in the A.V. of imported good

Summary

Issues:
1. Inclusion of technical know-how fee in the assessable value of imported goods.
2. Application for out-of-turn disposal of the appeal.

Issue 1: Inclusion of technical know-how fee in the assessable value of imported goods:
The case involved the appellants importing components for automotive lighting equipment from a Japanese company, Koito Manufacturing Co. Ltd., and not including the technical know-how fee paid under a technical license agreement in the assessable value. The Customs authorities sought to include this fee in the assessable value, leading to a series of decisions against the appellants. The appellants argued that the fee was for post-import activity and not a condition of sale of the imported goods. They relied on precedents where similar fees were held not includible in the assessable value. The Tribunal considered these arguments and the recent final order in a similar case, where it was held that such fees were not related to the imported goods and were not a condition of sale. Based on this, the impugned order was set aside, and the appeal was allowed.

Issue 2: Application for out-of-turn disposal of the appeal:
The appellants had filed two applications, one for a stay of operation of the impugned order and the other for out-of-turn disposal of the appeal. After examining the records and hearing both sides, the Tribunal decided that the appeal itself required final disposal at that stage. Therefore, the application for out-of-turn hearing was allowed, and the stay application was disposed of before proceeding to deal with the appeal. Despite the respondent's suggestion to hear the appeal on a later date, the Tribunal found that the appeal could be finally disposed of based on the facts presented and binding precedent, leading to the decision to allow the appeal.

In conclusion, the Tribunal's judgment revolved around the inclusion of a technical know-how fee in the assessable value of imported goods and the application for out-of-turn disposal of the appeal. The decision was based on the arguments presented by the appellants regarding the nature of the fee and its relation to the imported goods, supported by relevant precedents and recent final orders. The Tribunal ultimately set aside the impugned order and allowed the appeal, emphasizing the importance of considering the specific circumstances and legal principles in such valuation disputes.