TaxTMI 
TaxTMI 
2017 (3) TMI 760
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....sioner has been sustained. The order in original 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 ....
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....ommissioner. Hence the appellant importer is in appeal 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 satisfi....
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.... further submit as follows: (a) Authorities have committed jurisdictional error by demanding customs duty on royalty paid @5% of net sales revenue of the replicated CDs/DVDs (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 Downloa....
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....mported goods of the same class or kind; (ii) the usual costs of transport and insurance and associated costs incurred within India; (iii) the customs duties and other taxes payable in India by reason of importation or sale of the goods. 7.1 In this regard 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, ....
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....ional buyers. The unit average price of Rs. 952/- taken by the lower revenue authorities, therefore, is not correct. The Deductive value is to be arrived at by considering the unit price at which the goods were sold to institutional buyers, as these sales satisfy the provision of Rule 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 origi....
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....has to be included in the assessable value for the purpose of charging duty of Customs. 9. The impugned order sustains that the royalty paid and payable for the goods imported through link is to be taken into account for the purpose of assessable value. However, there is premise that the goods imported through link, that is through internet, which are called download and which may be sold by the importer appellant cannot be subjected to the Customs duty. The downloads imported through link or through internet are not the subject matter of present proceedings. In this regard the appellant has referred to CESTAT Delhi decision in case of Oracle India Pvt. Ltd. Vs. Commissioner of Customs (Export), New Delhi 2015-TIOL-1766-CESTAT-DEL, which....