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TMI Blog2013 (12) TMI 1089X X X X Extracts X X X X X X X X Extracts X X X X ..... India Pvt. Ltd. 2. The facts arising for consideration in this case are as follows : 2.1 M/s. Bridgestone India Pvt. Ltd. are manufacturers of tyres and tubes and they undertook imports from their foreign collaborator M/s. Bridgestone Corporation, Japan. Inasmuch as the foreign supplier and the buyer are related persons the valuation of the goods imported is undertaken by the SVB cell attached to the Custom House. As per the joint venture agreement entered into between the two parties it was noticed that the importer was paying royalty and licence fee to the foreign supplier in terms of the Licence and Technical Assistance Agreement entered into on 1-4-2005. The department was of the view that the royalty and licence fee paid by the impor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Rules, 2007, royalty, licence fee or any other payment for using a process if otherwise includible in terms of clause (c) or (e) of Rule 10(1) shall be added to the price actually paid or payable notwithstanding the fact that such goods may be subjected to the said process after importation. Therefore, in view of the explanation, royalty and licence fee are required to be added to the assessable value of the goods imported. 5. The learned counsel appearing for the respondent on the other hand submits that the royalty and licence fee paid by them is not a fee of sale for the goods imported but it relates to the goods manufactured and sold in India and, therefore, the amounts paid towards royalty and licence fee cannot be included in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r that the royalty has to be paid @ 3% on net sale value of the rubber products manufactured and sold by the Licensee in India. Similarly, licence fee has to be paid @ 1% of the net sale value of the rubber products manufactured and sold by the Licensee bearing the trade mark. In other words, these payments are liable to be made in respect of the goods manufactured and sold in India and not in respect of the goods under importation. The goods under importation may be raw materials or components for the manufacture of the goods in India but the royalty and the licence fee are not payable on the imported goods but on the goods manufactured and sold in India. Rule 10(1)(c) of the Customs Valuation (Determination of Value of the Imported Goods) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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