9911796707
TMI Blog2007 (11) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... [Order per P.G. Chacko, Member (J)] -1. The appellants had imported motor and electrical items from M/s. Veit Gmbh Co., Germany and cleared the goods on payment of duty on a provisional basis with 20% loading on the transaction value at the instance of the Special Valuation Branch (SVB). The above goods were imported for use in the manufacture of vacuum ironing tables, the 'contract product' under a Technical Collaboration Agreement between the importer and the German company. Under the same agreements technical information in the form of documentation was transferred by the German company to the importer for the manufacture of the contract product in India. Technical assistance in the form of training of the importer's personnel was als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantify the duty recoverable from them. The present appeal is against this order of the appellate Commissioner. 2. After hearing both sides and considering their submissions, we note that the only issue arising for consideration is whether the lump sum of DM 50,000 paid by the assessee as technical information/assistance fee to their foreign collaborator and the trade mark fee paid by the assessee to the collaborator for the right to use the latter's trade mark on the contract product in India are liable to be added to the transaction value under Rule 9(1)(c) and Rule 9(1)(d) respectively. After a perusal of the Technical Collaboration Agreements we find that the lump sum of DM 50,000 was paid as consideration for technical information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retative Note to Rule 9(1)(c) in the context of arguing against addition of trade mark fee to the transaction value. This Note reads as under :- "Rule 9(1)(c) - 1. The royalties and licence fees referred to in Rule 9(1)(c) may include among other things, payments in respect of patents, trademarks and copyrights . However, the charges for the right to reproduce the imported goods in the country of importation shall not be added to the price actually paid or payable for the imported goods in determining the customs value." It would appear from the above Note that the payments in respect of trade marks are also covered by the payments referred to under Rule 9(1)(c). In other words, trade mark fee has to be treated as analogous to ro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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