https://www.taxtmi.com/caselaws?id=337196 Technical know-how fees and royalty paid under a collaboration agreement were held not includible in the assessable value of imported goods under the Customs Valuation Rules, 1988. The declared transaction value had already been accepted, and the royalty was calculated on the net selling price of the finished product after excluding bought-out components, taxes and forwarding expenses, indicating it related to indigenous value addition rather than the imported components. The agreement did not show that payment of technical know-how fees was a condition of sale of the imports. The view that such amounts must be added merely because manufacturing would otherwise not be possible was rejected, and the original assessment was restored. en-us Tue, 06 Dec 2016 00:00:00 +0530 Wed, 31 Jan 2018 17:44:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337196 Technical know-how fees and royalty paid under a collaboration agreement were held not includible in the assessable value of imported goods under the Customs Valuation Rules, 1988. The declared transaction value had already been accepted, and the royalty was calculated on the net selling price of the finished product after excluding bought-out components, taxes and forwarding expenses, indicating it related to indigenous value addition rather than the imported components. The agreement did not show that payment of technical know-how fees was a condition of sale of the imports. The view that such amounts must be added merely because manufacturing would otherwise not be possible was rejected, and the original assessment was restored. Case-Laws Customs Tue, 06 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337196