2001 (3) TMI 539

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....hri G. Sreekumar Menon, SDR, for the Respondent. [Order per : V.K. Agrawal, Member (T)]. - The issue involved in this appeal filed by M/s. United Systems Engineers Pvt. Ltd. is whether the cost of Research and Development charges and Technological know-how fees are includible in the assessable value of prototype radio manufactured and supplied by them to Rural Communication Division, Telecom....

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....i.e. Development of TDMA UHF Digital Radio Terminal for Rural Communication Division, Telecom Research Center, Bangalore, and (ii) A Technology Transfer Agreement with C. DOT for transferring the technology for the 4000 MHz radio unit and necessary CPFSK modem required for transmission of 384K bits/sec data; that under the agreement they were not only to transfer the technology but also to sell th....

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....e case as there was no concealment of facts or mala fide on their part. 5. The learned SDR refers to the finding of the Commissioner wherein it has been mentioned that there was no evidence to show that any of the documents on the basis of which show cause notice has been issued was brought to the notice of the Department; that only during the investigation these documents came to light; t....

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....s observed that intellectual inputs greatly enhance the value and giving example, the Hon'ble Supreme Court mentioned that the value of paper is negligible as compared to the value or price of the Encyclopaedia or a Dictionary. The Hon'ble Supreme Court held that "this means that the charges of a duty is on the final product whether it be Encyclopaedia or the engineering or architectural drawings ....