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TMI Blog2017 (2) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... einafter referred to as "the Importer") from different group companied of SCPA Holding SA, Switzerland and vide order in original No. 14/UG/98 dated 13.5.1998, the then Assistant Commissioner, SVB, New Delhi held that the Importer and the overseas suppliers were related persons in terms of Rule 2(2) of the Customs (Determination of Price of Imported Goods) Rules, 1988, however, the prices declared by the Importer for assessment of the imported goods to duty were not influenced by the relationship. He ordered that the price declared by the importer in the import invoice in respect of imports made from these suppliers be accepted as transaction value in terms of Rule 4(3)(a) of the said Rules. This branch in periodical review of Order dated 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aying royalty to their foreign supplier for manufacturing the goods in India and for the imported goods in India. In that circumstances, the amount paid on account of royalty is not liable to be included in the value of imported goods. He also submitted that initially the respondents entered into an agreement in January, 1991 and after examining their agreement the transaction value was accepted by Special Valuation Branch till 2010 and there is no change in the terms of the agreement and same has been disputed in the year 2010. Leaned Commissioner (Appeals) has examined the issue in detail and arrived at a decision that the value is not required to be added. In that circumstances, impugned order is to be upheld. He also relied on the decis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other buyer in India and if yes, to submit a comparison of import prices. The importer has submitted that the Foreign Suppliers have not supplied any identical/similar goods to any other importer in India. 9. The importer has also submitted that product imported/manufactured by them is Hightech security inks mostly used for printing banknote by Govt. authorized presses namely; Bhartiya Reserve Bank Note Mudran Private Limited (a wholly owned subsidiary of the Reserve Bank of India) and Security Printing & Mining Corporation India Limited (a wholly owned by Ministry of Finance, Govt. of India). Being Hitech Product and to keep the secrecy, raw material sourced from associate companies." 6. We have also gone through the provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h royalty would be includable in the case even if the imported goods have underegone the said process after importation of such goods. The department could not show that the royalty and other charges were for the imported goods and they were as a condition of sale of such imported goods. Undisputedly the royalty on technical know how was paid only for the manufacture sub-assembly of Dis Brake Systems. Therefore, the royalty and other charges are not includible and the impugned orders is not sustainable and is set aside. The appeal is allowed."
7. In that circumstances, we do not find any infirmity in the impugned order, same is upheld. The appeal filed by the Revenue is dismissed.
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