Valuation of imports from related suppliers and the inclusion or ...

Customs valuation: Royalty inclusion for related party imports based on pricing influence.

Case Laws Customs

October 16, 2024

Valuation of imports from related suppliers and the inclusion or exclusion of royalty in the transaction value. The key points are: Rule 10(1)(c) of the Customs Valuation Rules, 2007 allows for the addition of royalty to the transaction value of imported goods. The Supreme Court in CC vs. M/s Ferodo India Pvt Ltd examined the issue and held that technical know-how and royalty payment are includible in the price of imported goods if it is a prerequisite for the supply by the foreign supplier. However, in the present case, the pricing was at arm's length, and the relationship did not influence the price, which was accepted by the department in past transactions between the same parties. The Commissioner (Appeals) rightly held that there was no question of adding royalty to the transaction value. The CESTAT dismissed the Revenue's appeal, considering the Supreme Court's decision in CC vs. M/s Ferodo India Pvt Ltd.

View Source

← Previous Next →

Valuation of imports from related suppliers and the inclusion or ...

Customs valuation: Royalty inclusion for related party imports based on pricing influence.

Case Laws Customs

October 16, 2024

You may also like:

Valuation of imported goods - inclusion of royalty and the cost of advertisement incurred by the Appellant in India in assessable value - related party - The Tribunal...

Valuation of imported goods - related party transactions - addition of 5% royalty on carbon brushes under Rule 10(1)(c) - the pricing was at arm’s length and the...

Valuation (Central Excise) - Sale to related parties - the price to the related person cannot be called a non-commercial price since the same was higher than the price...

The case pertains to the valuation of imported goods and the inclusion of royalty payments for determining the transaction value. The key points are: The transaction...

This case deals with the valuation of imported goods, specifically whether license fees and management fees paid to related parties should be included in the assessable...

Valuation of imported goods - The applicant's proposed valuation method, Transfer Pricing System and Steering Concept (TPuS) method also known as Resale Price...

Valuation of imported goods - Inclusion of lump sum and periodical patent and technology know how fee paid - The Tribunal analyzed the provisions of Rule 10 (1) (c) of...

Valuation of imported goods - In the absence of any evidence showing existence of a price adjustment between the cost incurred by the buyer on account of...

Valuation - related party transaction - know how agreement - it was considered that royalty is not the condition of sale of the imported goods, royalty not included - AT

Valuation of goods - related parties / inter-connected undertaking - import price agreed between one OMC and another based on the MOU reached between them can be...

Valuation of imported goods - undervaluation of aluminium and zinc scrap of various grades imported from overseas suppliers. Redetermination of value based on import...

Valuation of imported goods - Related person - Merely because there were transfer of funds in India amongst three importers will not make them related persons in terms...

Transaction value - Valuation (Customs) - Special or abnormal discount to the related buyers which were in excess of 3% discount - The Appellate Tribunal observed that...

Valuation of imported goods - Related party transaction - import of foreign base supplier namely Oman India Fertiliser Company, Oman (OMIFCO) - It is apparent that the...

Valuation of imported goods - Inclusion of royalty amount for use of the trademark - There is no finding by Commissioner that the buyer had adjusted price of imported...

Quick Updates: