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TMI Blog2017 (1) TMI 276X X X X Extracts X X X X X X X X Extracts X X X X ..... ssable value. In the present case, it was considered that royalty is not the condition of sale of the imported goods, royalty not included - appeal allowed - decided in favor of appellant. - C/452/05 - A/94264/16/CB - Dated:- 6-12-2016 - Mr Ramesh Nair, Member(Judicial) and Mr. Raju, Member (Technical) Shri. Arun Mehta, Advocate for the Appellants Shri. Chatru Singh, Asstt. Commissioner(A.R.) for the Respondent ORDER The Dy. Commissioner of Customs, Gatt Valuation Cell, NCH accepted the transaction value declared in the invoices for the year 1993-96 under Rule 4 of Customs Valuation Rules, 1988. The matter was taken up for valuation for the reason that there is relationship between foreign supplier and the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... established. Mainly he contended that without technical knowhow the imported goods would have no value since no manufacturing activity could take place, which is apparently misleading and on this basis value cannot be added. 3. Shri. Chatru Singh, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. We have carefully considered the submissions made by both sides and perused the record. 5. We find that Ld. Adjudicating authority after careful considerations of the reply to the questionnaire and knowhow agreement came to very reasonable conclusion that value declared by the appellant is acceptable. The relevant findings of the Order-in-Original reproduced below: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported goods. But I find that imports were made from the foreign company both components and capital goods. The fact the roreign company has a 40% equity participation and has directs in the Respondent s board establishes the relationship under Rule 2(2) of the CVR, 1988. I agree with appellant that without technical knowhow, the imported goods would have no value since no manufacturing activity can take place without the technical knowhow. Therefore, the DM60000 paid in consideration for transfer of technical knowhow would be addable to the price of imported goods in terms of Rule 9(1)(c) of the CVR, 1988 on a pro rata basis. However, regarding the payment of royalty, I do not agree with the appellant since, royalty is to be p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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