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TMI Blog2013 (3) TMI 615X X X X Extracts X X X X X X X X Extracts X X X X ..... ZB/C-I(CSTB) - Dated:- 12-3-2013 - Shri Ashok Jindal, Member (J) and S.K. Gaule, Member (T) Shri T. Vishwanathan, Advocate, for the Appellant. Shri Amand Shah, Additional Commissioner (AR), for the Respondent. ORDER Heard both sides. 2. The appellant filed this appeal against Order-in-Appeal No. 887/MCH/AC/GVC/2012, dated 1-11-2012 passed by the Commissioner of Customs (Appeals), Mumbai whereby the learned Commissioner (Appeals) has set aside the lower adjudicating authority s order and allowed the appeal of the department. 3. Briefly stated facts of the case are that the appellants are engaged in the import of seeds for sale in India from M/s. Syngenta AG, Switzerland and its various subsidiary and associated co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, that too on value addition undertaken in India. The contention is that the Rule 10(1)(c) is not attracted in the present case to include royalty in the value of the imported goods. The contention is that the royalties would be included in the assessable value of the imported goods only if the following conditions are satisfied cumulatively and simultaneously :- (i) license fees or royalty is relatable to the imported goods; and (ii) license fees or royalty is paid a condition of the sale of the imported goods. The contention is that as per Interpretative Note to Rule 10(l)(c), the payment made for right to reproduce the imported goods will not form part of the value of the imported goods. The contention is that explanati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the supplier for use of providing technology, proprietary information and technical know-how connected to the manufacturing process. Undisputedly the appellants have imported various vegetable seeds from the supplier. The contention of the appellants is that the appellants paid royalty only in respect of sale of corn and sunflower seeds produced in India with the help of technical know-how, that too on value addition undertaken in India. 5.2 As per interpretation notes to Rule 10(1)(c) of Customs Valuation Rules, 2007 the royalties and licence referred to in Rule 10(1)(c) may include among other things, payments in respect to patents, trademarks and copyrights. However, the charges for the right to reproduce the imported goods in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 (S.C.) relied upon by the department is not applicable to this case. In that case the Hon ble Supreme Court held that Technical Assistance agreement is related to the components also as not only supplier will assist the purchaser by selling the components but also approving the components which may be purchased from sources other than the supplier. In addition to providing technical know-how the supplier was also providing several other services in connection with the imported goods which led the Court to conclude that the royalty payment was a condition of sale of goods. Hon ble Supreme Court in the case of Commissioner of Customs v. Ferodo India Pvt. Ltd. - 2008 (224) E.L.T. 23 (S.C.) held that under Rule 9(l)(c), [now Rule 10(1)(c)], i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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