2003 (6) TMI 32

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.....K. Usha, President]. - This is an appeal at the instance of the importer M/s. Hoerbiger India Pvt. Ltd. challenging the order passed by the Commissioner (Appeals) on 9-12-2002. The issue arising for consideration is whether running royalty of 5% liable to be paid by the appellant to its foreign collaborator is to be added to the invoice value of the goods imported. 2. Appellants are manufactur....

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....e rate of 5% to 8% of the net selling price of the product manufactured and sold in India to other companies of Hoerbiger group. Deputy Commissioner of Customs, GATT Valuation Cell, Mumbai took the view that the above running royalty was not related to the imported product and that it is not a condition of sale of the supplied goods. The above finding was challenged by the Department and the Commi....

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.... granted by this agreement to the licensee. The know-how that has been granted to the licensee is in respect of manufacturing certain product. It is clear from the terms of the agreement that the licence fee or running royalty payable is not relatable to the goods imported. The manner of payment of the licence fee, namely, "The % of licence fees as mentioned in para 12(1) and (3) above are the ....