9911796707
|
Home
Issues involved:
The issues involved in this case are the inclusion of a lump-sum payment in the transaction value of imported goods and the justification of directing the primary authority to include royalty payable by the appellant. Summary: Issue 1 - Inclusion of Lump-Sum Payment: The appellant, a joint venture for wind electric generators, imported parts under a technology transfer agreement. The Special Valuation Branch provisionally assessed the goods, adding a 1.5 million DKK payment for technical know-how to the import value. The appellant challenged this, arguing the payment was not for royalty. The adjudicating authority added the 1.5 million DKK to the import value. The Commissioner remitted the matter, upholding the addition for technical service charges and royalty. The appellant appealed this decision. Issue 2 - Inclusion of Royalty Payment: The appellant contended that the lump-sum payment was for technical documentation necessary for assembly and testing post-import, not for the import value. The Tribunal cited a previous case where technical know-how was deemed essential for the imported goods' use. However, the Supreme Court reversed this decision, emphasizing that royalty unrelated to imported goods should not be included in the assessable value. The Tribunal found the lump-sum payment had no connection to the imported goods and set aside the orders to include it. The Tribunal also noted that the payment of royalty was not related to the imported goods and should not be included in the assessable value. In conclusion, the Tribunal set aside the orders of the adjudicating and appellate authorities, ruling in favor of the appellant regarding the inclusion of the lump-sum payment and royalty in the assessable value of the imported goods.
|
