https://www.taxtmi.com/caselaws?id=172013 Royalty or licence fees are includible in customs valuation only when they relate to the imported goods and are payable as a condition of sale under Rule 10(1)(c) of the Customs Valuation Rules, 2007. Where the department cannot show that the royalty was a prerequisite for purchase of the imported goods, or that it formed part of the true transaction value under Section 14(1)(a) of the Customs Act, it cannot be added to assessable value. On the facts noted, the royalty was linked to post-import manufacturing and value addition in India, so the Commissioner (Appeals) order could not stand and the importer succeeded on valuation. en-us Tue, 12 Mar 2013 00:00:00 +0530 Fri, 27 Jan 2017 11:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172013 Royalty or licence fees are includible in customs valuation only when they relate to the imported goods and are payable as a condition of sale under Rule 10(1)(c) of the Customs Valuation Rules, 2007. Where the department cannot show that the royalty was a prerequisite for purchase of the imported goods, or that it formed part of the true transaction value under Section 14(1)(a) of the Customs Act, it cannot be added to assessable value. On the facts noted, the royalty was linked to post-import manufacturing and value addition in India, so the Commissioner (Appeals) order could not stand and the importer succeeded on valuation. Case-Laws Customs Tue, 12 Mar 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172013