TaxTMI 
TaxTMI 
2016 (12) TMI 1430
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....the Deputy Commissioner reached a conclusion that the two are related. The Deputy Commissioner examined the agreement and came to a conclusion that technical know-how fee for erection of plant for manufacture of licensed products and technical information concerning know-how relating to manufacturing process, raw materials, training of personnel to work on plant for manufacture of licensed products, etc. is not related to the imported goods and is not a condition for sale of goods. Therefore, no addition in terms of Rule 9 of Valuation Rules needs to be made to the declared value. The Deputy Commissioner also compared the specimen invoice of third party imports in India, Pakistan, Saudi Arabia and Malaysia wherein the transaction took place....
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.... came to a conclusion that the amount of US $ 1,44,000 has to be added to the invoice value under Rule 9 (1) (d) of the Customs Valuation Rules, 1988. This amount related to the know-how for erection of plant for manufacture of licensed products. He also added a part of the fee paid for technical information consisting of know-how, relating to the manufacturing process, raw materials raw materials, training of personnel to work on plant for manufacture of licensed products, etc. to the invoice value. Further, it is seen that the said amount has been added under Rule 9 (1) (b) (iv). Aggrieved by the said order, both the Revenue as well as M/s.Royle Extrusion Systems Ltd. are in appeal before the Tribunal. 2. Ld. Counsel for M/s.Royle Extrus....
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....ns. We find that the order-in-original holds that Royle Extrusion Systems Ltd. are related to the foreign collaborator. However, after examining the third party imports to different countries, the transaction value was accepted. It is seen that in the appeal before the Commissioner (Appeals), the Revenue as well as Royle Extrusion Systems Ltd. have not challenged this issue. In view of that it is not open to either party to challenge that Royle Extrusion Systems Ltd. and foreign collaborator are related and that relationship has affected the import price in terms of Rule 4 (3) of the Customs Valuation Rules. 5. Now the second issue regarding the includability of fee paid to the foreign collaborator in terms of technical collaboration agree....