2019 (6) TMI 278

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..... inent to note that the Appellant are also procuring 39% of the parts/components required from the domestic market. We find that Commissioner (Appeals) has not gone into the facts of the case and has not given any reasoning for the conclusion drawn therein. As far as the relationship has not influenced the pricing pattern there is no justification for inclusion of royalty and technical know-how in the assessable value of the imported products - Appeal allowed - decided in favor of appellant.
Dr. D.M. Misra, Member (Judicial) And Shri P Anjani Kumar, Member (Technical) Shri N.D. George Adv for Appellant Shri Manoj Kumar, AC (A.R) for Respondent ORDER Per: Shri P Anjani Kumar, Member (Technical) M/s. Kostwein (I) Co. Pvt. Ltd, the .....

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..... Department are to be considered on the basis of the Balance Sheet of the relevant year after giving reasonable opportunity to the respondent. Hence this appeal. 2. The Learned Counsel for the Appellant submits that only components / parts were imported and no capital goods were imported; the technical know-how agreement was presumptive in nature and the payment is for the role of the supplier in assisting the Appellant in the manufacture of final product; the fee was not related to the trade mark or patent and in no way connected to the import of parts and components. He relied upon the following cases. (i) Engelhard Environmental Sys. India Ltd. 2005 (185) E.L.T. 155 (Tri. Chennai) The said order has been upheld by the Hon'ble Supr .....

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..... with the list prices of the supplier and found that they are in order. He found that the foreign supplier raises invoices Ex-works after adding mark ups. The original authority finds that 15% of marks up are added to cover the expenses and profit margin and therefore the relation has not influenced the prices. The original authority also finds that the technical know-how fees is more relatable to the technology imparted than to the goods imported and that it is not a pre-condition for import of goods. It is also pertinent to note that the Appellant are also procuring 39% of the parts/components required from the domestic market. We find that Commissioner (Appeals) has not gone into the facts of the case and has not given any reasoning for t .....

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