9911796707
TMI Blog2001 (4) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(b)(iv) of CVR 88 and the assessable value shall be determined under Rule 8 (residual method) of CVR 88 by adding the above mentioned technology transfer fee and the provisional assessment may be finalised by loading technology transfer fee. 2. In the appeal, appellant submits that their company is affiliated with persons and entities located in Israel and United States of America and entered into a memorandum of understanding with the Government of Andhra Pradesh on May 13, 1997 for development of agricultural lands using Israel technology in drought prone Kuppam block of Chittoor district; that Govt. of Andhra Pradesh requested for ad-hoc exemption from payment of customs duty on import of agricultural machinery, service equipments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... personal hearing proceeded to issue the impugned order by deciding the case ex parte and without giving an opportunity to them to appear and defend their case and thus violated the principles of natural justice. In the grounds of appeal the appellant submits that the lower authority s observation that the appellant imports agricultural equipments and spares and sells them as such in Indian Market and that the comparison between landed cost and selling price in Indian Market has not been furnished is wrong, the imported equipments are for setting up of a demonstration project in collaboration with Govt. of Andhra Pradesh; that the technology transfer fee cannot be added to the value of spares as the equipments having been cleared at nil dut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing etc., the lower authority has held that the appellant and supplier are related in terms of Rule 2(2)(i) (vi) of CVR 88 and that this relationship has influenced the transaction value and that if the technology transfer fee is objective and quantifiable in data, it is includable under Rule 9(1)(b)(iv) and has justified the addition with various decisions. 6. The agreement between BHC, Mauritius and the appellants has been perused and Serial No. 4 of this agreement shows that in consideration of BHC, Mauritius having agreed to disclose to BHC Agro the latest method of Israel technology and other processes and having further agreed to supply technical advice and data, BHC Agro agrees to pay BHC, Mauritius a sum of US $ 25,000 per annu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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