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TMI Blog2017 (1) TMI 968X X X X Extracts X X X X X X X X Extracts X X X X ..... vious that it is not open to the appellant to source the material from any person other than the foreign collaborator as it is not possible to part with the designs and drawings of the components to anyone else without concurrence of the collaborator - this aspect of the agreement has not been specifically examined by the original adjudicating authority. Appeal disposed off by way of remand. - C/1192/05 & C/796/05 - A/85022-85023/17/CB - Dated:- 27-12-2016 - Shri M.V. Ravindran, Member (Judicial) And Shri Raju, Member (Technical) Shri Anil Balani, Advocate the appellant Shri Ahibaran, Addl, Comm. (AR) for the respondent Per: Raju These appeals have been. filed by M/s. Erhadt Leimer (l) Ltd. against two different ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for manufacture of Corana treating equipment their components, spares and accessories entered into on 17.10.1994. There is no condition of sale in the agreement, though they nave imported various components from the supplier in their agreement there is no obligation on the importer to import goods from the supplier. There were technical Know-How lump-sum payments in three installments and 5% Royalty payment on net selling price i.e., Royalty payable only on indigenous value addition of products excluding value of imported components and any standard bought out component and various other taxes. There is no import of capital goods or machinery. There is no condition of sale in the agreements. Though they have imported various component ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplier non they have any idea of third party imports. There is no evidence on record to show that the relationship has influenced the invoice value. 2. The matter was agitated revenue before the Commissioner (Appeals) who has observed that the lower authorities has without giving any evidence come to a conclusion that there is no condition for sale. He has observed that the components imported by the appellant are proprietary in nature and the same cannot be sold to anyone at the price quoted in the present ease. He as observed that the lower authorities have failed to examine the provisions of the agreement to come to e conclusion that he has arrived. Accordingly, Commissioner (Appeals) set aside the order of the lower authority. Agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen that the knowhow agreement is for manufacture and sale of Corona equipment, their components, spares and accessories. The agreement clearly states that the technical knowhow shall mean: - The Technical Know-how Shall mean:- a) Technical and engineering information and data relating to the manufacture and testing of the Products. b) Specifications details, designs and drawings of components and/or raw materials required for the manufacture of the Products. c) All information concerning the application, sale and service of the Products. d) Information and details of any improvement or development pertaining to the Products. e) Training of technical personnel of INDIAN COMPANY in their plant in the F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... knowhow required to manufacture these products has been transferred to the appellant and it entities them to manufacture the same. However, appellants are not free to disclose the technical knowhow to any other person in terms of clause 8 12 of the agreement reproduced above. 9. In these circumstances, it is obvious that it is not open to the appellant to source the material from any person other than the foreign collaborator as it is not possible to part with the designs and drawings of the components to anyone else without concurrence of the collaborator. It is seen that this aspect of the agreement has not been specifically examined by the original adjudicating authority and to that extent the order of Commissioner (Appeals) settin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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