Tribunal overturns Commissioner's order, excludes technical knowhow royalties from assessable value. Appellant's name change approved.

The Tribunal allowed the appellant's appeal, setting aside the Commissioner (Appeals) order. It was determined that the technical knowhow and royalty payments should not be included in the assessable value of imported goods, as they were not directly related to the imported items but rather to a separate agreement. The change of name application by the appellant was approved, and the case was disposed of accordingly.

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Issues:
1. Change of name application by the appellant.
2. Dispute regarding technical knowhow and royalty agreement.
3. Inclusion of technical knowhow and royalty payments in assessable value.
4. Appeal against the Commissioner (Appeals) order.

Issue 1: Change of name application by the appellant
The appellant, formerly known as M/s Cadbury (India) Ltd., applied for a change of name to M/s Mondelez India Foods Pvt. Ltd. The appellant also converted to a Private Limited Company and submitted a Certificate of Incorporation issued by the Govt. of India, Ministry of Corporate Affairs. The change of name in the cause title was allowed, and the miscellaneous application was disposed of accordingly.

Issue 2: Dispute regarding technical knowhow and royalty agreement
The appellant had an agreement with Cadbury Schweppes Overseas Ltd., UK for technical assistance and royalty agreement. The Dy. Commissioner of Customs, GATT Valuation Cell, examined the case and concluded that the relationship between the appellant and the collaborator did not influence the price and payments related to imported goods. However, the Revenue challenged this decision before the Commissioner (Appeals), arguing that the technical knowhow supplied was essential for processing imported goods. The Commissioner (Appeals) allowed the Revenue's appeal, remanding the case back to the original adjudicating authority.

Issue 3: Inclusion of technical knowhow and royalty payments in assessable value
The Revenue contended that the technical knowhow and royalty payments should be included in the assessable value of imported goods as per Rule 9(1)(c) of the Customs Valuation Rules, 1988. They argued that the payments were related to the condition of sale of goods and should be considered in the valuation. The Commissioner (Appeals) agreed with this argument and remanded the case for further consideration.

Issue 4: Appeal against the Commissioner (Appeals) order
The appellant challenged the order of the Commissioner (Appeals), arguing that the relationship with the collaborator did not impact the transaction value. They contended that the import of finished chocolates and other items was unrelated to the collaboration agreement. The Tribunal reviewed the submissions and found that the imports were not from the foreign collaborator, and therefore, the Customs Valuation Rules could not be invoked. Consequently, the impugned order was set aside, and the appeal was allowed on 14.12.2016.

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