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TMI Blog1995 (2) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... ipment Ltd. (TAFE) and M/s. Massey Ferguson Manufacturing Ltd. (MF) was only £ 10,000 which was the intrinsic value of the goods. He submitted that on perusal of the MOU it follows that it was reached with the express intention to the formulation, provision and supply by MF to TAFE over a period of 3 years of technical assistance, documentation and training for the purpose of assisting TAFE to upgrade the specifications, performance and quality of its current range of tractors to internationally acceptable standards and to assist technically in installing, upgrading and continuously improving their manufacturing facilities. He stated that from Item 1, relating to the scope of the MOU it was evident that the consideration that was to flow to MF was to be for both technical assistance and documentation. He added that as a part of the technical assistance MF were required to send technical personnel to enable TAFE to assimilate and absorb the transfer of information and upgrade their manufacturing facilities. He contended that the consideration was, therefore, for transfer by MF to TAFE of a right to reproduce in India of the originals or copies of industrial models and designs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd stated that it had been clarified that on the lines of earlier agreement, the revised GATT agreement on Customs Valuation stipulates that the charges for the right to reproduce the imported goods in the country of importation shall not be added to the price in determining the customs value. In support of his contention that except the amount of £ 10,000 paid to M/s. Wallace Cartwright, the other payments made in terms of the MOU will not form a part of the assessable value since they have to be deemed as payments towards the right for reproduction of the imported goods in the country of importation. He referred to the illustrative examples given in Paras 61.1 to 61.4 of the Annexure to the said publication under the heading "Application of theAgreement to the illustrative examples of the Brussels Definition of Value". 3. On behalf of the respondents, Shri Sharad Bhansali, learned SDR submitted that question whether any part of the payment made by the appellants in terms of the MOU between them and M.F. could be treated as payment towards the rights to reproduce the imported goods not forming a part of the assessable value of the imported goods, will have to be decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for customs purposes. In support of their contention they have placed reliance on the examples given under the heading "Application of the Agreement to the Illustrative Examples of the Brussels Definition of Value" in Paras 61.1 to 61.4 of the Annex. to the said publication of the Customs Cooperation Council. In this regard we are inclined to agree with the learned Departmental Representative that the contents of the publication of Customs Cooperation Council referred to by the appellants being only a study prepared by the Secretariat of the Customs Cooperation Council in response to a request for a technical comparison of the systems of valuation commonly known as the Brussels Definition of Value and system of valuation evolved by the GATT Valuation Agreement cannot have any statutory force and therefore cannot be relied upon for the purposes of interpretation of the relevant provisions of the Customs Valuation Rules, 1988. Hence, the issue and arising for consideration in this case has to be decided purely in terms of the provisions of Rule 9(1)(c) of the Customs (Valuation) Rules, 1988 and the relevant interpretative note, which are reproduced below :- "9. Cost of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s operate or would operate in Madras and Karnataka in India. The MOU also confirms that M.F. are willing to provide and supply to the appellants for consideration as mentioned therein the specified know-how, technical assistance/documentation as per the essentiality established during the joint study made by the technical personnel of MF and the appellants during the period of six months from 17-5-1991 for the upgradation of specifications, performance and quality standards of all models of tractors so that they could be offered for sale in the world market at internationally acceptable standards. In the said MOU portion `A' covers five sets of drawings in relation to manufacture of MF 240 tractors with specific reference to : 1.Components/manufacturing processes etc. of Mark III Hydraulic pump assembly. 2.Four Wheel drive. 3.Oil immersed brake and straight drive near axle assembly. 4.Ergonomic pedals configuration and steering linkages. 5.General manufacturing lay outs, process lay outs, tool lay outs etc. The MOU shows an amount of 1,55,000.00 Sterling Pounds as the consideration for the supply of these drawings. According to the MOU, the objective which both the parties se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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