TaxTMI 
TaxTMI 
2017 (3) TMI 760
X X X X Extracts X X X X
X X X X Extracts X X X X
....ginal dated 15.05.2014 passed by Deputy Commissioner has inter-alia held that importer and foreign suppliers are related persons and invoice value of the goods imported has been influenced by their relationship. The order in original inter-alia makes a mention that assessable value of CD/DVDs will be arrived at by taking into account the differential of the landed cost of the imported goods and the landed cost arrived at deducting 73% from the retail sale price of the goods and additions to the assessable value accordingly. The impugned order also says that on royalty paid and payable for the goods imported through the link, the duty and interest, if any is payable under appropriate Tariff item by taking into account royalty at the rate of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eal before the Tribunal against Commr (Appeals) order. 6. The appellant has been represented by ld Advocates, Sarva Shri Tarun Gulati, Sparsh Bhargva and Anupam Mishra and Revenue has been represented the Ld. AR, Shri Govind Dixit. 7. Based on the appeal memorandum and written submissions the ld Advocates for the appellant inter-alia submits as under. i. the issues involved are: a. Valuation of imported CDs/DVDs under Customs. b. Levy of customs duty on royalty paid for online download of education content for replication of CDs/DVDs in India. ii Appellant submits that the conditions given under Rule 3(3) of Customs Valuation Rules have been satisfied. Merely because parties are related, it does not amount to under valuation. CC....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s (b) Online download of content does not amount to import as per Customs Act. (c) Online download of content does not qualify as import of goods a. Associated Cement Companies Ltd. Vs CC, 2001 (128)E.L.T 2 (S.C) b. Pantex Geebee Fluid Power Ltd. Vs CC, Mumbai, 2003 (160) E.L,T 514 (Tri. Bang.) c. Digital Equipment India Ltd. Vs Collector, 2001 (135) E.L.T 962 (Tri. Bang.) d. Platinum Solutions Vs CC, Jammu & Kashmir 2014 (201) E.L.T 254 (Tri. Del.) (d) No Customs duty can be charged on Online Downloads a. Oracle India Pvt. Ltd. Vs CC [2015-TIOL-1766- CESTAT-DEL] 6. The ld. AR for the Revenue reiterates the contents of the order passed by lower Revenue authorities. 7. After perusal of the facts on record and submissions of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the ld. AR for the Revenue merely refers to unit price at which import goods are sold and not to the greatest aggregate quantity of such goods sold to unrelated persons in India. Further, From the wordings used in Rule 3 and Rule 7 of CVR, 2007 it is clear that if valuation cannot be arrived at under normal provisions of Section 14 and then further under Rules 3, 4 and 5 of CVR, 2007, then valuation of imported goods are to be determined under Rule 7 or under Rule 8, and where valuation is not determined even under Rules 7 and 8, then valuation is to done under Rule 9 of CVR, where it is called Residual Method. 7.2 The impugned order sustains the valuation of the goods as decided by the Deputy Commissioner‟s Order In Original dated 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ule 7 of CVR, 2007, which state that value of imported goods shall be based on the unit price at which such goods or identical/similar goods are sold in the greatest aggregates quantity to unrelated persons in India. Once this unit price at which the imported goods were institutionally sold has been decided, the deductive value is to be arrived at after giving the deductions mentioned in the Rule 7. With this finding the matter deserves to be remanded to the original adjudicating authority. Both sides agree that valuation is to be arrived at under provisions of Rule 7 of CVR read with subsection 14(1) of the Customs Act. In the light of the findings given here the adjudicating authority shall decide the matter denovo after giving the necess....