TaxTMI 
TaxTMI 
2013 (4) TMI 712
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....the Technical know-how agreement with their foreign principal, for which they were paying royalty for use of technical know-how. The appellant was also imported certain raw material such as styrene, acrylates and chemicals from foreign principals, which were used in the manufacture of various plastic products manufactured by the appellant in India. Since the foreign supplier and the Indian importer were related, the transaction was referred to the Special Valuation Branch for examination. The same was examined in detail by the Assistant Commissioner of Customs, GATT Valuation Cell, Mumbai. The said assessing officer found that the relationship between the foreign supplier and the Indian importer has not influenced the transaction price of t....
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....s :- (i) The appellant imports and also locally purchases various raw materials from various sources for the manufacture of plastic products by them in India. They have obtained a technical know-how for the manufacture of the said goods in India from BASF Germany and are paying royalty for the technical know-how supplied on the basis of net sale price of the manufactured product in India. In the Technical know-how Agreement entered into by them with the foreign know-how provider, there is no condition that they have to procure the raw materials from the supplier of the technical know-how only and not from anybody else. In fact, the facts are otherwise. Bulk of the raw materials are procured from local supplier....
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....; Order No. A/673/2012/CSTB/C-I, dated 30-10-2012 in the case of ABB Ltd. - 2013 (288) E.L.T. 296 (T). In all the above cases, a similar issue was involved and this Tribunal held that merely because the appellant has obtained the technical know-how from the foreign principal and pays royalty, in the absence of any specific provisions relating such royalty payment with supply of goods, it cannot be held that the transaction price is influenced by the relationship. Accordingly, he pleads for allowing the appeal. 4. The learned Addl. Commissioner (AR) appearing for the Revenue, on the other hand, reiterates the findings of the lower appellate authority and relies on the decision of the Hon'ble Apex Court in the case of....
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....e of plastic product in India both in terms of quantity and also in terms of value. If that be so, it cannot be presumed that the relationship has influenced the transaction price or the payment of royalty has nexus with the supply or procurement of raw materials from technical know-how supplier or is a condition of sale for the supply of goods. 5.2 In the case relied upon by the Revenue in Matsushita Television & Audio (I) Ltd. (supra), the facts were different. In that case, it was agreed between the foreign supplier and the Indian importer that the foreign supplier would assist the Indian importer in manufacturing the colour TV by selling the components and Indian importer/manufacturer was not free to procure the components from an....