https://www.taxtmi.com/caselaws?id=768742 CESTAT Mumbai held that royalty payments to overseas licensors should not be included in the assessable value of imported goods under Rule 10(1)(c) of Customs Valuation Rules, 2007. The tribunal found that the 3% running royalty was paid on net sales value after excluding imported goods value, and was for using technical know-how in manufacturing, not as a condition for sale of imported goods. Since the importer could procure inputs from any source, the royalty did not meet the cumulative conditions required under Rule 10(1)(c). The majority decision set aside the lower authority's order, allowing the appeal despite technical member's dissent. en-us Mon, 17 Feb 2025 00:00:00 +0530 Sat, 12 Apr 2025 09:28:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768742 CESTAT Mumbai held that royalty payments to overseas licensors should not be included in the assessable value of imported goods under Rule 10(1)(c) of Customs Valuation Rules, 2007. The tribunal found that the 3% running royalty was paid on net sales value after excluding imported goods value, and was for using technical know-how in manufacturing, not as a condition for sale of imported goods. Since the importer could procure inputs from any source, the royalty did not meet the cumulative conditions required under Rule 10(1)(c). The majority decision set aside the lower authority's order, allowing the appeal despite technical member's dissent. Case-Laws Customs Mon, 17 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768742