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TMI Blog2018 (1) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... r to the renewal of SVB order? - Held that: - Revenue has justified the demand for the past period by alleging that the respondent has mis-declared the answer to question No.20 of the SVB Questionnaire - Revenue has justified mis-declaration on the part of the respondent and invoking extended period of limitation. Appeal allowed. - C/2954/2012-DB - A/50281/2018 - Dated:- 22-1-2018 - Mr. (Dr.) Satish Chandra, President And Mr. V. Padmanabhan, Member (Technical) Shri R.K. Manjhi, AR for the appellant Dhruv Malte, Advocate for the respondent ORDER Per V. Padmanabhan The present appeal has been filed by Revenue against the Order-in-Appeal No.124/2012 dated 12.06.2012. The respondent is engaged in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld DR explained the grounds of the appeal as follows: In terms of Article 19 of the Technical Collaboration Contract (TCC), the respondent is required to pay Documentation Charges and Initial fee to M/s Showa, Japan to cover a part of the development and documentation cost in relation to specified models imported by the respondent. Such amounts, which have not been included in the invoiced value of Master Sample/Utility Models, are payable to cover the development cost of such products by M/s Showa, Japan and is required to be included in the assessable value of imported goods as per Rule 10(1) (e) of the Customs Valuation Rules. He also justified the re-assessment of earlier bills of entry filed for such goods for the period 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E shall pay to LICENSOR the initial fee in the amount of Fifty Million Yen. This Initial Fee covers the models of Products specified in Annex-I here to only. 5. The issue of royalty is not disputed before us. From a cursory perusal of Article 19, as above, it is easy to see that the documentation charge and initial fee payable for the models of products are towards covering a part of the development and documentation cost in relation to such models and not towards royalty. Payment of the models specified in Article 19 is mandatory for procurement of Master Samples/Utility Models which serves as reference model for manufacture of the components by M/s Showa India using the technical assistance provided by M/s Showa Japan. It is obvious ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew of the above, Revenue has justified mis-declaration on the part of the respondent and invoking extended period of limitation. 8. At the time of the original SVB order dated 15.07.2008, a copy of the TCC was submitted along with application and questionnaire. The TCC has not changed even at the time of renewal of the SVB circular after three years. Hence, we find it difficult to comprehend how Revenue can allege suppression of facts on the basis only of the declaration made in the Question 20 of the SVB questionnaire. Since the entire contract was in possession of Revenue at the time of issue of both SVB orders and there is no material change in the contract during the meantime, hence allegation of suppression cannot be upheld. Conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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