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TMI Blog2013 (8) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions for sale of the goods being valued and in case such royalty and fees are not included in the price actually paid or payable. If the cost of technical know-how payment of royalty had no nexus with the working of the imported goods then such payment was not includable in the price of the imported goods – court relied upon Commissioner of Customs Vs. Ferodo India P. Ltd. (2008 (2) TMI 12 - Supreme Court ) and Collector vs. Essar Gujarat Ltd.(1996 (11) TMI 426 - SUPREME COURT OF INDIA) – decided against revenue - C/449/05 - A/633/13/CSTB/C-I - Dated:- 10-4-2013 - Ashok Jindal And S K Gaule, JJ. For the Appellant : Shri V C Khole, AR For the Respondent : Shri H C Dharmadhikari, Adv. Per: S K Gaule: Heard both si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner (Appeals) has erred in holding that the running royalty paid on percentage of net sale price for manufacturing operation in India as per the know how agreement is not includable to the price of the imported goods on the ground that net ex-factory selling price excludable landed of imported goods and cost of standard bought out components etc. 4.1 The contention is that consideration for the rights granted and the technical know-how is supplied in the form of lump sum payment or running royalty or both would not make out to the fact that the same is related to imported goods and paid as a condition of sale of the imported goods and thus includable in the value of imported goods and thus includable in the value of imported goods und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lties and license fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable." The royalty can be included in the assessable value in case there are conditions for sale of the goods being valued and in case such royalty and fees are not included in the price actually paid or payable. The term under in 9 (1)(c) is "Condition of sale". As per oxford Dictionary condition' means "stipulation or something on fulfillment of which something else depend". Meaning thereby things on whose fulfillment or other things are made to depend. The department could not sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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