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Issues: Whether the technical collaboration fees paid under a separate agreement were includible in the assessable value of the imported second-hand plant under the customs valuation rules.
Analysis: The sale agreement for the plant and the technical collaboration agreement were separate and independent, and the import of the plant was not conditional upon obtaining any licence from or paying any royalty to the collaborator or any third party. The collaboration arrangement was for assistance in setting up an upgraded plant with modified machinery and parts, not as a precondition of sale of the imported goods. Rule 9(1)(e) permits addition only of royalties and licence fees related to the imported goods that the buyer is required to pay as a condition of sale and that are not already included in the price actually paid or payable. On these facts, the principle applied in Essar Gujarat did not govern the case.
Conclusion: The technical collaboration fees were not includible in the assessable value of the imported plant, and the inclusion order could not be sustained.
Ratio Decidendi: Fees for technical collaboration are not addable to the assessable value of imported goods unless payment of such fees is a condition of the sale and the payment is related to the imported goods.
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