2016 (11) TMI 906

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....RDER This appeal is filed by the revenue against Order-in-Appeal No. MUM-CUSTM-SMP-19-20/2015-16 dated 11/05/2015. 2.  Heard both sides and perused the records. 3.  On perusal of records, we find that revenue is aggrieved by the order of the first appellate authority on the ground that first appellate authority has not enhanced the value of goods imported by the importer respond....

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....on of royalty to the transaction value is on the grounds that royalty is computed on -gross sale value excluding duties and taxes only and not the landed cost of the imported components. On this basis, the Adjudicating Authority has held that Royalty Payment. is required to be added proportionately to the assessable value of the imported goods as per the formula reproduced below: % addition to ....

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.... manufactured by Licensee (the 'Gross Sales Value'), exclusive of costs of packaging, cost of carriage and insurance, duties and taxes, sale value of scrap and currency exchanged variances, On this basis, the Licensee as per Article 9 of the agreement is required to carry out computation of royalties as payment to the licensor in the manner stated in this article. 11.  I find that ....

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....ame from the related foreign supplier. In such a situation, the condition that the payment of royalty is relatable to the imported goods and is a condition for sale of goods cannot be sustained in law. Thus, there is no nexus between the royalty payment and the import of components." As against the above recorded factual finding, it is noticed that revenue has not contraverted the fact, that re....