Dependent Agent PE unresolved for lack of factual inquiry; arm's-length distribution accepted; royalty claim rejected; 15% refund interest (Section 24...
Exemption under s.10(23C)(iiiad) upheld; appeal allowed, interest and dividends excluded from annual receipts, disallowance deleted, capital gains exe...
CESTAT set aside the impugned order insofar as it held that royalty payments to a foreign related entity were includible in the transaction value of imported components under rule 10(1)(c) of the 2007 Valuation Rules. The Tribunal concluded the royalty related to domestically manufactured finished goods, was not a condition of sale of the imported goods, and therefore could not be added to assessable value; consequential imposition of penalty under s.114A of the Customs Act was unsustainable. The Tribunal further held the extended period of limitation could not be invoked because there was no evidence of suppression of facts with intent to evade duty. The appeal was allowed and the impugned order set aside.
CESTAT set aside the impugned order insofar as it held that royalty payments to a foreign related entity were includible in the transaction value of imported components under rule 10(1)(c) of the 2007 Valuation Rules. The Tribunal concluded the royalty related to domestically manufactured finished goods, was not a condition of sale of the imported goods, and therefore could not be added to assessable value; consequential imposition of penalty under s.114A of the Customs Act was unsustainable. The Tribunal further held the extended period of limitation could not be invoked because there was no evidence of suppression of facts with intent to evade duty. The appeal was allowed and the impugned order set aside.
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