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TMI Blog2023 (3) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... the transfer of knowhow and related technical assistance was not a condition for sale of the capital goods. The Hon ble Apex Court in the case of J.K. Corporation Ltd. [ 2007 (2) TMI 1 - SUPREME COURT ] held that Any amount paid for post-importation service or activity, would not, therefore, come within the purview of determination of assessable value of the imported goods so as to enable the authorities to levy customs duty or otherwise. The Rules have been framed for the purpose of carrying out the provisions of the Act. The wordings of Sections 14 and 14(1A) are clear and explicit. The Rules and the Act, therefore, must be construed, having regard to the basic principles of interpretation in mind. Thus, the view of the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 to the invoice value on importation of the new capital goods by the importer and thus maintaining the earlier order. The respondent-importer thereafter filed an appeal before the Commissioner (Appeals) who after verifying the collaboration agreement has held that the technical knowhow fee of EURO 40,000 is not related to the import of capital goods and there is no stipulation and it is a condition for sale of the import of capital goods. The order was thus modified by the Commissioner (Appeals) directing not to include the technical knowhow fee to the assessable value. It is argued by the Ld. A.R that there are no grounds to modify the order passed by the SVB especially when the importer had filed affidavit stating that there is no chang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l knowhow fee to the assessable value of imported goods is legal and proper. 6. The relevant part of the collaboration agreement has been reproduced in the impugned order. The said agreement reads as under : Sub-article 7- Consideration for the Disclosure of Know-How and Related Technical Assistance: 7.1 In consideration for the disclosure of know-how and a rendition of related technical assistance by DG to DI, DI shall pay to DG a Technology Transfer Fee of EURO 40,000 Royalty at the rate of 5% on the sale value of the products sold by DI in India 8% on the sale value of the products exported by DG provided that no royalty shall be payable: (a) for the sales made by DI to DG (b) on the value of the imported com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same would not be computed for the said purpose. Any amount paid for post-importation service or activity, would not, therefore, come within the purview of determination of assessable value of the imported goods so as to enable the authorities to levy customs duty or otherwise. The Rules have been framed for the purpose of carrying out the provisions of the Act. The wordings of Sections 14 and 14(1A) are clear and explicit. The Rules and the Act, therefore, must be construed, having regard to the basic principles of interpretation in mind. 8. In the case of Commissioner of Customs, Chennai Vs Standard Industrial Oils P. Ltd. 2009 (234) ELT 518 (Tri.-Chennai), it was held as under: 3 . After hearing the learned SDR for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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