9911796707
TMI Blog1999 (10) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... by the respondents M/s. Rockland Building Materials Ltd. The Asstt. Commissioner added to the declared price of DM 10,72,820/- the value of documentation of DM 2,00,000/- and also know-how fee of DM 3,01,000/-. The Collector (Appeals) upheld the addition of a sum of DM 2 lakhs but observed that barring a sum of DM 9,400/- the rest of the fees were not addable to the assessable value. In doing so, he had accepted a sum of DM 301.000 as given by exporters who were also collaborators of the importer. The observation of the Collector (Appeals) is as under: The next major point of dispute was focussed on the quantum of the cost of supply of documents and services, as per the Collaboration Agreement, which had been agreed, at DM 2 Lakhs. This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the entire quantum of fees paid is required to be added. We shall take each article for determination separately: Article 2: Supply of know how and documentation: BRINKHEGE s know how and documentation as available as defined in article 1.3 above will be delivered to RBML in India within 120 days of receiving the first instalment of agreed lumpsum payment on the terms of payment of this agreement and it shall be to the extent possible in English language and metric system, in one reproducable transparency plus 2 copies. Article 1.3 read as below :- Know how and Documentation shall mean all technical information made available in writing, orally or otherwise by Brinkhege to RBML on the manufacture, quality control and testing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the plant in India is not includible in the assessable value. 7. Article 5.1 relates to charges for conducting tests on raw materials and finished products. This is a post commencement of production and therefore the charges are clearly not includible. 8. Article 5.2 speaks of supply of information on latest improvements and developments without specifying the subject matter. On the face of the wording of this article, nothing can be imparted therefrom as to the includibility of the charges paid. However, the working is not suggestive of any improvement or development prior to the installation and therefore these charges also have, to be held as not addable. 9. Article 5.3 relates to know-how for installation. In terms of the Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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