TaxTMI 
TaxTMI 
TaxTMI 
2009 (7) TMI 967
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....espondent. [Order per : Chittaranjan Satapathy, Member (T)]. - Heard Shri T.V. Suresh Kumar, Ld. Advocate, appearing for the appellants. He states that the impugned order has been passed by the lower appellate authority pursuant to remand order by the Tribunal. In the impugned order the lower appellate authority has included the technical licence fee and royalty in the value of imported ma....
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....the assessable value as the same relates to the imported goods. On an enquiry from the Bench, he clarifies that there is no finding in the impugned order to the effect that the payments towards technical license fee and royalty were made as a condition of sale. 3. After hearing both sides, we find that the Hon'ble Supreme Court in the case of Ferodo India (cited supra), has held as follows :....
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....nd licence fees related to the imported goods is the cost which is incurred by the buyer in addition to the price which the buyer has to pay as consideration for the purchase of the imported goods. In other words, in addition to the price for the imported goods the buyer incurs costs on account of royalty and licence fee which the buyer pays to the foreign supplier for using information, patent, t....
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....ter makes payment of the price of the imported goods. He also incurs the cost of technical know-how. Therefore, the Department in every case is not only required to look at TAA, it is also required to look at the pricing arrangement/agreement between the buyer and his foreign collaborator. For example if on examination of the pricing arrangement in juxtaposition with the TAA, the Department finds ....