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TMI Blog2014 (1) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... etermination of assessable value of the goods imported by the appellant, M/s. Tata Yutaka Autocomp Ltd., Pune under Section 14(1) of the Customs Act, 1962 read with Customs Valuation (Determination of Price of Imported Goods) Rules, 1988. The appellant imported automobile parts and filed Bill of Entry along with declaration form. On enquiry made by the Dy. Commissioner of Customs, GATT Valuation Cell, Mumbai and on filing of the questionnaire the adjudicating authority passed the adjudication order wherein he ordered that the declared invoice value be loaded by 3% under the said Rules. The said order was confirmed by the first appellate authority in the impugned order. Aggrieved by the said order the appellant is before us. 3. On beha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C.). Therefore, he prays that the impugned order be set aside. 4. On the other hand, the learned AR submitted that the amount of royalty is to be added in the transaction value as this is the basis on which the payment is made by the appellant of the imported goods being their parent-company in Japan. To support this contention he relied on the decision of M.G.M. Entertainments Pvt. Ltd. v. Commissioner of Customs, Chennai - 2008 (228) E.L.T. 120. 5. We have carefully considered the submissions of both the sides and examined the agreement on the basis of which royalty of 3% has been paid by the appellant to their parent company. Article 14.1.2 of the terms and conditions of the agreement is reproduced below : "In consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndition pre-requisite for the supply of imported goods by the foreign supplier and if such condition exists then such royalties and fees have to be included in the price of the imported goods. Under Rule 9(1)(c) the cost of technical know-how is included if the same is to be paid, directly or indirectly, as a condition of the sale of imported goods. At this stage, we would like to emphasise the word indirectly in Rule 9(1)(c). As stated above, the buyer/importer makes payment of the price of the imported goods. He also incurs the cost of technical know-how. Therefore, the Department in every case is not only required to look at TAA, it is also required to look at the pricing arrangement/agreement between the buyer and his foreign collaborat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment between cost incurred by the buyer on account of royalty/licence fees payments and the price paid for imported items. No effort was made by the Department to ascertain enhancement of royalty/licence fees by reducing the price of the imported items. In the circumstances, we find no infirmity in the impugned judgment of the Tribunal. In this case, the Department has gone by TAA alone. On reading TAA in entirety, we are of the view that there was no nexus between royalty/licence fees payable for the know-how and the goods imported for the manufacture of licensed products. The Department itself has invoked Rule 9(1)(c)." 6. We have gone through the case law cited by the learned AR in the case of M.G.M. Entertainments Pvt. Ltd. (supra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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