TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether royalty or licence fee paid under the agreement was includible in the assessable value of the imported goods under the Customs valuation rules.
Analysis: The royalty was payable in consideration of rights and licences for manufacture and sale of the licensed products in India. The record showed that the payment related to manufacture of the appellant's products and not to the imported goods themselves. Following the governing principle, royalty or licence fee can be added to the price of imported goods only when it is shown to be paid directly or indirectly as a condition of sale of the imported goods and when there is a nexus between such payment and the imported items. In the absence of any finding that the royalty was a disguised element of the price of the imported goods or that the pricing arrangement reflected such adjustment, mere reliance on the technical agreement was insufficient.
Conclusion: The royalty payment was not includible in the assessable value of the imported goods, and the addition of 3% to the declared invoice value was unsustainable.
Ratio Decidendi: Royalty or licence fee is includible in the assessable value of imported goods only when it is shown to be paid as a condition of sale of those goods and is sufficiently linked to their import price.
TaxTMI 
TaxTMI 
