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TMI Blog1995 (10) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... ical assistance agreement with and licence from M/s. Yamaha Motor Company Ltd., a concern in Japan. The agreement entered into on 1-8-1983 was amended on 6-2-1984. The period originally fixed has expired, the agreement has been kept alive by subsequent agreements. We are told that even now the agreement is in force. The Assistant Collector was not prepared to accept the invoice price and determined the assessable value by adding one per cent to the invoice price. This order for the period between 1983-88 was set aside in the appeal. The appellate order is challenged in the earlier appeal. In 1988 the Customs Valuation Rules were amended. For the period subsequent to the amendment of Rules, the Assistant Collector passed a similar order and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation data, know-how, drawings and industrial property rights with the help of which the assessee has to manufacture motor cycles and could export the same to all countries except countries where M/s. Yamaha Motor Company Ltd. has manufacturing facilities. The assessee is also allowed to indicate that the motor cycle is manufactured under the licence of Yamaha. M/s. Yamaha Motor Company Ltd. also agreed to provide personal instructions and training in Japan or in India to assessee s personnel. The assessee is also entitled to have industrial property rights and the trade mark usage provided by Yamaha. Under clause 5 of the agreement as amended, in consideration of the technical information, the industrial property rights and the trade m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y price obtaining in international trade. The agreement does not reserve to the foreign company any controlling interest in the manufacture of motor cycles or in the sale except to countries where the foreign country has manufacturing facility. Thus, there is nothing in the agreement to indicate that any part of the royalty is intended to cover any part of the price of the components. 6. The matter is no longer res integra, One of the earliest decisions in this regard is in the case of Collector of Customs, Bombay v. Maruti Udyog Limited, Gurgaon reported in 1987 (28) E.L.T. 390 (Tribunal). The assessee in that case undertook manufacture of Maruti Cars with technical know-how and expertise provided by a foreign company which was permitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dra Ltd. , Bombay reported in 1995 (76) E.L.T. 481 = 1995 (7) RLT 341, Supreme Court took a similar view on the assessable value of the components imported by M/s. Mahendra Mahendra Ltd., Bombay, for manufacture of diesel engines with the technical know-how supplied by a foreign company under specific agreement which provided for payment of lumpsum royalty as well as running royalty for making available such technical know-how etc. 8. To the same effect is the decision of the Tribunal in the case of Collector of Customs v. Modi Xerox Ltd. reported in 1990 (48) E.L.T. 141 (Tribunal) which considered that technical know-how agreement between M/s. Modi Xerox and foreign company. The agreement provided for 5% royalty on the products sold. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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