Royalty not added to import value where earlier ruling had already rejected transaction value loading on same facts.

Royalty charges were held not includible in the transaction value of imported goods under Rule 10(c) of the Customs Valuation Rules, 2007, because the loading of royalty had already been rejected in earlier proceedings on the same facts. The Tribunal noted that the invoice value was previously found not liable to enhancement by adding royalty, and that the departmental report had accepted that earlier decision. As the very basis for the impugned loading order no longer survived, the order could not be sustained.

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Issues: Whether royalty charges were liable to be included in the transaction value of imported goods under Rule 10(c) of the Customs Valuation Rules, 2007.

Analysis: The proceedings had been initiated only as a consequence of an earlier SVB order directing loading of royalty in the declared transaction value. That basis had already been carried in appeal, and the Tribunal had earlier held that the invoice value was not required to be enhanced by adding royalty and had set aside the loading order. The departmental report also recorded acceptance of that earlier Tribunal decision. In view of the earlier binding and accepted decision on the same issue, the impugned order could not survive.

Conclusion: The royalty amount was not includible in the transaction value, and the impugned order was unsustainable.

Ratio Decidendi: Where the very basis for loading transaction value by adding royalty has already been set aside in earlier proceedings on the same facts, the royalty cannot be added again under Rule 10(c) of the Customs Valuation Rules, 2007.

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