2004 (5) TMI 100

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... in India is to be added to the transaction value of capital goods, namely, Twin Screw Extruder machine with accessories and spare parts imported by the assessee. A show cause notice was issued to the appellant by the Customs authority seeking to finalize the assessment by including know-how fee of US $ 38,000 paid to CNCCC to the value of capital goods imported. The adjudicating authority took the view that the licence fee is not includible in the value of capital goods except to the extent of US $ 2850. Department took up the matter in appeal and the appellant filed a cross-objection. The Commissioner (Appeals) under order dated 18-2-2002 allowed the appeal filed by the department. The appellant challenged the above order before the Tribu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....BC (Polycosrbonate/ ABS), PC (Polycarbonate) /PBT (Polybutyl Terephthalate), PVC (Polyvinyl Chloride)/ ABS, PC (Polycarbonate/PE (Polyethylene) /PP (Polypropylene), their properties are set in Annex.2 to this agreement." The term 'Know-how' is defined as follows :- "The Know-how-the experience, know-how, production secrets  required for the production 'Licensed Products". Technical documentation which is required for the production of the licensed products are listed in Annexure I to the agreement. The above would clearly show that the Know-how licence was not granted in respect of production of Twin Screw Extruder machines imported by the appellant. Under an agreement dated 16-4-1993 CNCCC had agreed to sell to the appellant ....