https://www.taxtmi.com/caselaws?id=218556 Royalty paid under technical know-how agreements was not includible in the assessable value of imported components under the Customs Valuation Rules because it was linked to manufacture and sale of licensed products in India, not to the import of the components. The agreements did not require the importer to source components exclusively from the foreign collaborator, and even where a purchase preference clause existed, there was no compulsory purchase obligation. In the absence of a demonstrated nexus between the royalty and the imported goods, the conditions for adding the royalty to the import value were not met, and the assessee succeeded. en-us Tue, 30 Oct 2012 00:00:00 +0530 Fri, 10 May 2013 17:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=218556 Royalty paid under technical know-how agreements was not includible in the assessable value of imported components under the Customs Valuation Rules because it was linked to manufacture and sale of licensed products in India, not to the import of the components. The agreements did not require the importer to source components exclusively from the foreign collaborator, and even where a purchase preference clause existed, there was no compulsory purchase obligation. In the absence of a demonstrated nexus between the royalty and the imported goods, the conditions for adding the royalty to the import value were not met, and the assessee succeeded. Case-Laws Customs Tue, 30 Oct 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=218556