https://www.taxtmi.com/caselaws?id=766093 CESTAT Chennai ruled that 4% running royalty paid on net sales value of manufactured products cannot be included in transaction value of imported goods under Rule 10(1)(c) of CVR 2007. The tribunal held that royalty is only includable if paid on imported goods themselves or if there are conditions relating to sale of valued goods. Since imported goods were not procured from group company, no sale conditions existed, and royalty was based on net sales with damage/non-selling protections, the Commissioner's inclusion of royalty in customs valuation was incorrect. Appeal allowed. en-us Mon, 17 Feb 2025 00:00:00 +0530 Tue, 18 Feb 2025 08:10:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=766093 CESTAT Chennai ruled that 4% running royalty paid on net sales value of manufactured products cannot be included in transaction value of imported goods under Rule 10(1)(c) of CVR 2007. The tribunal held that royalty is only includable if paid on imported goods themselves or if there are conditions relating to sale of valued goods. Since imported goods were not procured from group company, no sale conditions existed, and royalty was based on net sales with damage/non-selling protections, the Commissioner's inclusion of royalty in customs valuation was incorrect. Appeal allowed. Case-Laws Customs Mon, 17 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=766093