2008 (3) TMI 114

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....le coming to the conclusion that the technical-know-how/licence fee is not to be included in the value of the consignment of raw materials, observed as under:- "I have perused the Technology Licence Agreement dated 28.07.1995.  As per condition 2(a) of the standard conditions attached to appropriate for foreign investment and Technology Agreement the royalty will be calculated on the basis of the net ex-factory sale price of the product, exclusive of excise duties minus the cost of the standard bought-out components and the landed cost of imported components, irrespective of the source of procurement, including ocean freight, insurance, customs duties etc. That being to the lower authority was right in holding that the royalty payme....

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....il in judgment passed by the Hon'ble Supreme Court in the matter of M/s. Essar Gujarat Limited (1996 (88) ELT 609 (SC) and State Bank of India Vs. Collector of Customs, Bombay (2000 (115) ELT 597 (SC) and the same are clearly applicable to the present case also. Therefore, both technical know how and royalty are clearly includible in the value in terms of Rule 9(1) (2) of Custom Valuation Rules, 1988". He has further observed in para 4 of his Order as under: "I have perused the Technology Licence Agreement dated 28.07.1995.  As per condition 2(a) of the standard conditions attached to appropriate for foreign investment and Technology Agreement the royalty will be calculated on the basis of the net  ex-factory sale price of t....