TaxTMI 
TaxTMI 
2017 (4) TMI 204
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....The appellant is engaged in supply, installation, testing, commissioning, repair and maintenance of elevator, escalator and walk ways. They are importing the goods from their related foreign suppliers. The valuation of goods imported by the appellants from their related foreign suppliers was looked into by the Special Valuation Branch, Delhi Customs. In the order in original dated 13.10.06, the declared invoice value in respect of goods imported by appellant from their related foreign supplier was accepted. In the subsequent renewal proceedings which culminated in order dated 14.1.10 also, the SVB decided to accept the declared invoice value. However, when the issue was considered once again in further renewal proceedings, order in original....
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....ver, the said decision stand distinguished by the Hon'ble Supreme Court in the case of Commissioner of Customs vs. Ferodo India P Ltd. [ 2008 (224) ELT 23 (SC)]. Consequently, there is no decision for loading the royalty payments on the invoice value. (ii) The declared invoices value have also been loaded with the management fee paid by the appellants in connection with various services rendered by the related company based in Hong Kong. However, there is no justification to load the invoice values for such management fees since this pertain to services separately availed by the appellant and are in no way connected with the goods imported by the appellant from the foreign suppliers. 5. Learned advocates appearing for the appellants h....
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....e, namely :- (i) materials, components, parts and similar items incorporated in the imported goods; (ii) tools, dies, moulds and similar items used in the production of the imported goods; (iii) materials consumed in the production of the imported goods; (iv) engineering, development, art work, design work, and plans and sketches undertaken elsewhere than in India and necessary for the production of the imported goods; (c) royalties and licence fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of the sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable; ....
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....l, non-exclusive right to use the Central Signs in the framework of the obuject of the company as company signs including company name componenmts for this purpose of highlighting its affiliation to the THYSSENKRUPP GROUP and to identify as well as sell and/ or perform its goods and/or services using the LICENSED RIGHTS. For the granting of the license, LICENSEE shall pay LICENSOR a license fee of 0.5 percent (0.5%) of LICENSEE'S sales revenue from products it manufactures and processes itself and from the performance of services. Sales of goods purchased for resale are not subject to license fee." From a perusal of the relevant article of the agreement, we find that the license fee is applicable only on the products manufacture....
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.... of the imported goods. Therefore, it cannot be said that the Consideration Clause in TAA is not relevant. Ultimately, the test of close approximation of values require all circumstances to be taken into account. It is keeping in mind the Consideration Clause along with other surrounding circumstances that the Tribunal in the case of Matsushita Television (supra) had taken the view that royalty payment had to be added to the price of the imported goods." In the light of apex court decision in the case of Ferodo India P Ltd., we are of the view that the earlier decision of Apex Court stand distinguished. Accordingly, we have no hesitation in setting aside the finding of the Commissioner (Appeals) to load the invoice value with royalty amo....