9911796707
TMI Blog2015 (1) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... ence fee paid by the appellant to the related foreign collaborator is includable in the assessable value of the goods imported by the appellant in terms of Rule 9 (1) (c) of the Customs Valuation Rules, 1988. Aggrieved of the same, the appellant is before us. 2. The learned Counsel for the appellant submits that while coming to the above conclusion, the lower appellate authority has referred to a joint venture agreement as per which the appellants importer herein initially undertakes selling of the imported product in the open market; in the second stage standard products will be imported and in the final stage critical products will be imported, while the rest will be manufactured locally. However, the learned Counsel submits that there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udes the elements specified therein, particularly CIF price and import duties of raw materials, intermediate goods, parts and other components purchased from Lord (foreign supplier) and the landed cost of imported components irrespective of the source of procurement including ocean freight, insurance and customs duties. These two exclusions make it abundantly clear that royalty is required to be paid only on the indigenous value addition that is taking place and it has nothing to do with the imported goods procured by the appellant either from the Lord or from anywhere else. In these circumstances, the conclusion of the lower appellate authority that the relationship has influenced the prices of the raw materials does not stand the scrutiny ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment had not influenced the price of the raw-materials imported by the appellant for undertaking further manufacturing in India. The said order also does not refer to any joint venture which revenue seeks to rely upon in their appeal. We have perused the terms and conditions of the collaboration agreement. From a reading of the clauses 8.01, 11.01 and 7.05, it is abundantly clear that royalty is required to be paid only on the value addition achieved by the appellant undertakes by the activities undertaken in India. It has nothing to do with the value of the imported raw-materials procured from the related foreign supplier or value of the imported components procured irrespective of origin. Thus, the contention of the Revenue that relations ..... X X X X Extracts X X X X X X X X Extracts X X X X
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