9911796707
TMI Blog2014 (12) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... d foreign supplier or value of the imported components procured irrespective of origin. In these set of facts, Rule 10(1)(c) of Customs Valuation Rules, 2007 is not applicable. If the royalty is computed excluding the cost of imported material and is based on the indigenous value addition which clearly shows that the payments made by the appellant for the collaboration and consultancy services has nothing to do with the imports undertaken by the appellants and therefore, the same could not be included in the assessable value of the goods imported under Rule 9 (1) (c) & 10 (1) (e) of the Customs Valuation Rules. - Decided in favour of assessee. - APPEAL No. C/85790/13 - Final Order No. A/1578/2014-WZB/C-I(CSTB) - Dated:- 18-9-2014 - P R Chandrasekharan and Ramesh Nair, JJ. For the Appellant : Shri J. Motwani, Adv For the Respondent : Shri Ahibaran, Addl. Comm. (A.R.) JUDGEMENT Per: Ramesh Nair: The appeal is directed against Order-in-Appeal No. 926/MCH/AC/GVC/2012 dated 22/11/2012 passed by Commissioner of Customs (Appeals), Mumbai. Vide the impugned order, the learned lower appellate authority has set aside the order of the adjudicating authority and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ier order dated 26.04.95 was maintained; ordered to accept declared invoice price in case of import made by the Appellant from M/s. Atlas Copco Air Power, Belgium and associate companies under Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 and Customs Valuation (Determination of Price of Imported Goods) Rules, 2007 for a period from the date of the expiry of the earlier Order-in-Original dated 26.04.95 till the expiry of this order; also mentioned that if contemporaneous imports at higher prices are noticed or there exists reasons other than the influence of relationship to doubt the value, assessing group may evaluate the value of the imported goods under appropriate provision of the said Rules. 5. The aforesaid order of the Asstt. Commissioner was appealed against by the revenue. The said Appeal was disposed of by the Commissioner of Customs (Appeals), Mumbai-I wherein she allowed the revenue's appeal by way of remand by holding that the amount of royalty or any lump sum payment is to be examined for inclusion in the assessable value of the goods. For this view she has taken support of case law of Matsushita Television and Audio India Ltd. V/s CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 9. The Ld. Commissioner (Appeals) allowed the appeal filed by the revenue and directed the adjudicating authority to examine the inclusion of the royalty/lumpsum amount in the value of the imported goods. We have observed that the Ld. Commissioner (Appeals) despite recording the various submissions on facts and on law made by the Appellant, not given any finding on such submissions. The most important fact in this case is that for the previous period this issue was settled by this Tribunal's order dated 16.11.2005. However, the Ld. Commissioner (Appeals) in her finding not even whispers this fact. We have perused the records carefully to find out that how in the present case, the earlier order is applicable or otherwise. It was found that the fact of the earlier case and of present case are identical. Ongoing through the agreements involved in the past case and in the present case, it is seen that terms are exactly same. Therefore, since there is no change in the facts and circumstances in the present case as compared to the earlier case, the present case is squarely covered by the Tribunal's order dated 16.11.2005 in the Appellant's own case. The order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he net domestic sale of the Licensed Products 6.2 For the purpose of calculation of royalty as per Article 6.1 above net ex-factory sales price of the licensee means the ex-factory sales price of the licensee exclusive of excise duties, taxes and levies, minus the cost of standard bought out components and the landed cost of imported components, irrespective of the source of procurement. 10.2 From a reading of the above clause of the Agreement, it is abundantly clear that royalty is required to be paid only on the sale of the manufactured goods and royalty is not relevant to the import of the components. For arriving the value for calculation of royalty, amongst other elements, cost of standard bought out components and the landed cost of imported components are deducted. The above clause also makes it clear that this method of deduction is adopted even if the procurement of components are made from any source other than the related foreign suppliers. Therefore from the clause referred above, it is amply clear that the royalty is not paid as a condition of the sale of the goods being valued . Thus the royalty has nothing to do with the value of the imported raw-materials ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
