9911796707
TMI Blog2003 (9) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... mponents and Parts imported by the appellant. Larger Bench of this Tribunal had occasion to consider a similar issue in detail with reference to various decisions of the Supreme Court as well as Tribunal in S.D. Technical Services [ 2003 (5) TMI 85 - CEGAT, NEW DELHI] . In the above case there was an agreement between the parties under which the appellants were given the right to manufacture and assemble in India licensed equipment for use in railway locomotives and rolling stock with the technical know-how supplied by the foreign collaborator. Appellant imported few sets of complete Air Brake distributors in CKD condition and otherwise. Revenue proposed to add technical know-how fee to the value of the goods imported. It was held that tech ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for consideration is whether the technical licence fee can be loaded to the value of the goods imported by the appellant. 2. The appellant is a joint venture company established with the objective of manufacture, fabrication, assembly and sale of fully automotive brake systems and related components. It entered into a Licence and Technical Assistance Agreement (LTAA) with Mando Machinery Corporation, Korea. As per the terms of the agreement the appellant was to pay total sum of US$ 4,50,000 to Mando, Korea as consideration for "the rights and technical information granted, disclosed and furnished by" Mando, Korea. The sum was to be paid in four instalments. The agreement also provided for payment of royalty at 3% of the net ex-factory sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 278-312, dated 18-3-2002 remanded the matter for fresh consideration by the Commissioner (Appeals). After remand, under the impugned order the Commissioner (Appeals) took the view that the appellant and exporter are related but the transaction value was not being rejected on the basis of relationship or mutuality of interest but she added technical licence fee to the assessable value of the goods imported by invoking Rule 9(1)(c) of the Customs Valuation Rules, 1988. 4. It is contended on behalf of the appellant that the appellant and its supplier are not related within the meaning of Rule 2(2) of the Customs Valuation Rules as conditions required for holding them related persons are not available in the facts of the case. We do not think ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r issue in detail with reference to various decisions of the Supreme Court as well as Tribunal in S.D. Technical Services (supra). In the above case there was an agreement between the parties under which the appellants were given the right to manufacture and assemble in India licensed equipment for use in railway locomotives and rolling stock with the technical know-how supplied by the foreign collaborator. Appellant imported few sets of complete Air Brake distributors in CKD condition and otherwise. Revenue proposed to add technical know-how fee to the value of the goods imported. It was held that technical know-how relates to manufacture of the licensed product in India and that even if the brake distributors, door closer etc. could be as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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