Royalty Payments Excluded from Import Goods' Assessable Value Under Rule 10(1)(c) Conditions

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....CESTAT ruled that royalty payments cannot be included in the assessable value of imported goods. The tribunal determined that Rule 10(1)(c) requires two cumulative conditions: royalty must be relatable to imported goods and paid as a sale condition. In this case, the 3% royalty was calculated on net sales after excluding imported goods' value, and was paid for manufacturing know-how rather than specific import transaction. The license agreement did not mandate importing from related parties, thus royalty should not be added to customs duty calculation. The majority opinion set aside the previous order and allowed the appeal in favor of the appellants.....