2013 (3) TMI 668

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....action (SPE) by the appellant. The terms of the agreement inter alia includes payment of lump sum royalty amount of US $ 2,00,000 over a 20 years period. Since both the appellant and M/s. Orochem Technologies Inc., USA were related in terms of the provisions of Valuation Rules, 2007, the issue of valuation of the imported raw materials and components and the prospect and feasibility of inclusion of royalty amount was decided by the learned Additional Commissioner of Customs vide order-in-original No. 275/ADC/SVB/BN/2010-11, dated 25-10-2010 whereby the learned Addl. Commissioner held that the royalty was not includible in the value of the imported raw material and components and accepted the transaction value under Section 14(1) of the Cust....

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.... Had there been any condition for the sale of the goods it would have been incorporated in the agreement. The contention is that the reliance placed by the learned Commissioner on the decision of Hon'ble Supreme Court in the case of Matsushita Television and Audio (India) Ltd. v. C.C. - 2007 (211) E.L.T. 200 is not relevant to this case since the facts and circumstances are different. The contention is that Rule 10 of CVR, 2007 does not provide for inclusion of royalty paid or payable in all cases. The inclusion of royalty or any other payment is warranted only when the conditions of Rule 10(1)(c) or (e) are fulfilled. The appellant has also placed reliance on the decision of the Hon'ble Supreme Court in the case of Commissioner of Customs ....