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TMI Blog2016 (11) TMI 1517X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as a condition for sale of material - appeal dismissed - decided against Revenue. - C/1096/2005-Mum - Final Order No. A/93706/2016-WZB/CB - Dated:- 7-11-2016 - Shri Ramesh Nair, Member (J) and Raju, Member (T) Shri Kamal Puggal, Asstt. Commissioner (AR), for the Appellant. Shri Narendra Dave, CA, for the Respondent. ORDER [Order per : Raju, Member (T)]. - The respondent, M/s. Shriram Pistons Rings Ltd., imported certain goods from M/s. Honda Foundry Co. Ltd. The respondent entered into a Technical Collaboration Agreement with M/s. Honda Foundry Co. Ltd., Japan for acquiring technical know-how, manufacturing and selling the range of pistons to the Joint Ventures (referred to as Honda Joint Ventures) in which Hond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported components. 2. Learned AR appearing for the Revenue argued that the respondents have imported certain capital goods from M/s. Honda Foundry Ltd. It was argued that the said capital goods are of no use without the technical know-how. It was argued that in view of the decision of Hon ble Supreme Court in the case of Essar Gujarat Ltd. - 1996 (88) E.L.T. 609 (S.C.), the value of know-how needs to be added to the assessable value. 2.1 Learned AR further argued that each engine is proprietary product and therefore, valves of the HONDA Engines or for other mutually approved engines will be designed specific and restricted for the use in the specific engines only. It was argued that depending upon the capacity, thrust and other te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RAM PISTONS, reduced by cost of packing, imported raw materials, taxes and duties, on the sales made of the product under this agreement. It was argued that in view of the above, it cannot be said that the royalty is related to the purchase of Aluminium Alloy from HONDA Foundry Ltd. The entire agreement and the supplementary agreement thereof do not contain any clause regarding purchase of any material or goods from HONDA Foundry Ltd. Paras 3, 4, 5 and 6 of the agreement read as under :- 3.0 The know-how includes designs, methods, drawings, documents and other related technical information as is or may be available from and used by Honda Foundry in the manufacture and sale of the products, during the period of this Agreement : More s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to SHRIRAM PISTONS queries from India. 3. Providing facilities for training and working at HONDA FOUNDRY S to SHRIRAM PISTONS personnel to enable to gain adequate knowledge and experience of various aspects of production, quality control, etc., at SHRIRAM PISTONS request and mutual convenience. 4. Providing guidances to technical personnel for work in India to provide the necessary knowledge and support to SHRIRAM PISTONS personnel in the development of production, quality control, rejection rates, etc., at SHRIRAM PISTONS request and mutual convenience. 5. Providing advice and recommendation in the selection and procurement of machines and equipments for the products and plant and equipments layout. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted accounts. In case, any of the products of this agreement is patented in India, the payment of royalty/lump sum payments made by SHRIRAM PISTONS for the agreement period shall also constitute full compensation for use of patent right till the expiry of the life of the patent, and SHRIRAM PISTONS shall be free to manufacture the products even after the expiry of the agreement without making any additional payments. (b) The expenses for deputation of technicians by HONDA FOUNDRY at the rate of Japanese yen 40,000 (forty thousand yen) per day per person which includes service charges and boarding and lodging expenses. In addition SHRIRAM PISTONS will pay for full economy class fare for Japan-India-Japan, transportation in India an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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