2017 (1) TMI 69

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....mpany namely M/s CHT (India) Pvt. Ltd. (the present respondent). As per clause 5.2 of the said agreement AGM undertakes to give various products to the respondent company for which the respondent company will pay to AGM royalty of maximum 5% on the net turnover. The Germany counterpart provides technical know how to the joint venture for which the respondent is under obligation to pay DM 3,00,000/- in five installments. The respondent imported certain goods from related persons of their German collaborator on the international list price. The questionnaire was issued by the GATT Valuation Cell to the respondent, which was replied by the respondent. In reply the. respondent clarified that they have joint venture of 50%-50% share holding with....

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....of the respondent submits that there is a concurrent finding of both the lower authorities that the technical knowhow fees and royalty is not the condition the sale of the goods supplied by the foreign collaborator. Therefore there is no substance in the revenue's appeal to interfere in the impugned order. He submits that as regard the royalty of 5% of turnover paid to AGM it is related to the goods supplied by AGM and the same is nothing to do with the imported goods. As regard the lump sum fees of DM 3,00,000/- by the respondent to the foreign supplier of the goods, he submits that the said fees is towards the technical know how for production, sales, and for using the brand name of the foreign supplier, therefore the same is not a co....