9911796707
TMI Blog2017 (1) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... ts had entered into these agreements with the collaborator M/s. Softal Electronics GmbH, Germany. The Order-in-Original dated 07.11.2000 and respect of agreement dated 17.10.1994 and Order-in-Original the dated 07.11.2000 in respect of the agreement dated 84.96 are identically worded. In both the orders on examining the documents submitted by the appellant, the adjudicating authority has reached to a conclusion that there is no condition of sale in the agreement and that they have imported various components from the supplier. It has been observed there is no obligation of the appellant to import goods from the supplier. The order also records that there is no relationship between the appellant and the foreign collaborator. The order furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom them as there is condition of sale in the agreements. These payments are inconsideration of supply of technical Know-How, drawing, design documentation etc. which is not covered under Rule 9(1) (b) (iv) of the Customs Valuation Rules 1988. The payment of Royalty also is not related to imported goods since it is paid only on indigenous value addition of the products. It is also payable for right to produce the similar goods of the collaborators in India. Agreement it is payable only on net selling price of the products after following deductions: 1. The landed value of any imported parts or components 2. Commission 3. Packing and transport charges. 4. Value of standard bought out components. 5. Taxes including excise duty. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued by the Id. counsel that Commissioner (Appeals) has wrongly set aside the order of the original adjudicating authority. Ld. counsel relied on the Customs Valuation Rules, 1988 and interpretation to the said Rules to assert that the royalty cannot be added to the transaction value. 4. Ld. AR relies on the impugned order. 5. We have gone through the rival submissions. We find that the Order-in-Original rightly records that there is no case for addition of value of drawings, designs etc. in terms of Rule 9(1)(b)(iv) of Customs Valuation Rules, 1988. This is the correct observation in so far as in this case the drawings and designs have not been supplied to the foreign collaborator but the same has been supplied by the foreign collaborator ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including SOFTAL and will be subject to the approval of the Government of India. 12 The INDIAN COMPANY shall not disclose at any time whatsoever the technical Know-how or any part thereof to any person, firm or body corporate and shall use its best efforts to ensure that the technical Know-How shall be kept secret at all times, provided however, that nothing herein contained shall be deemed to prevent the INDIAN COMPANY from disclosing the technical Know-how, but only so far as may be necessary to a Director, Officer or other Employees of the INDIAN COMPANY for the proper performance and discharge of their duties to the INDIAN COMPANY Provided further, that each Director, Officer or other Employee as aforesaid gives, prior to such disclosu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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