2006 (12) TMI 42

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....the course of its business, had entered into an agreement with London distributors for the import and distribution of the film "Web of Silence-AIDS". The goods were by filing bill of entry dated 21-4-2000 on payment of Customs duty as determined by the respondent, which included a sum of 12,500 US $ towards royalty. The inclusion of 12500 US $ in the value of the imported goods was disputed by the petitioner to the Commissioner and thereupon to the second respondent, who confirmed the order determining the assessable value by the lower authority. The correctness of the said order is canvassed in this writ petition. 3.The one and the only contention raised by the learned Counsel for the petitioner is that the inclusion of 12500 US $ in th....

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....at in determining the transaction value, there shall be added to the price actually paid or payable for the imported goods, - royalties and licence fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable. Rules have interpretative note and the interpretative note to Rule 9(1) is to the effect that royalties and licence fees referred to in Rule 9(1)(c) may include among other things, payments in respect to patents, trademarks and copyrights. However, the charges for the right to reproduce the imported goods in the country of importation shall not be added....