https://www.taxtmi.com/caselaws?id=757359 CESTAT Chennai held that royalty payments to a trademark owner cannot be added to the transaction value of imported goods unless the royalty is paid as a condition of sale. The appellant imported MSG from Thailand and paid separate royalty to Japan for trademark use in domestic repacking operations. The tribunal found no evidence that royalty payment was a condition of sale from the Thai supplier, distinguishing it from the actual import transaction. Following SC precedent in Ferodo India, the tribunal ruled that royalties paid for post-clearance activities like trademark licensing for domestic repacking are too remote to constitute customs duty. The original authority's order adding royalty to transaction value was set aside and appeal allowed. en-us Wed, 21 Aug 2024 00:00:00 +0530 Fri, 18 Apr 2025 14:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757359 CESTAT Chennai held that royalty payments to a trademark owner cannot be added to the transaction value of imported goods unless the royalty is paid as a condition of sale. The appellant imported MSG from Thailand and paid separate royalty to Japan for trademark use in domestic repacking operations. The tribunal found no evidence that royalty payment was a condition of sale from the Thai supplier, distinguishing it from the actual import transaction. Following SC precedent in Ferodo India, the tribunal ruled that royalties paid for post-clearance activities like trademark licensing for domestic repacking are too remote to constitute customs duty. The original authority's order adding royalty to transaction value was set aside and appeal allowed. Case-Laws Customs Wed, 21 Aug 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757359