NESTLE INDIA LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) HEARD both sides. The appellants Nestle India manufacture instant coffee, milk products, tea and other food preparations. They import "Peel Off Ends" (POE) from Nestle Brazil, Nestle France and Nestle Netherlands. The POE are seamed on the cans filled with instant coffee. The cans with instant coffee on which POE are seamed are exported. Nestle India imports POE which are of 73 mm or 99 mm in diameter.

(2.) IN this case, Nestle India had imported POE from Nestle Brazil through Chennai Port on 07.05.2000. The appellants wrote a letter to the Deputy Commissioner of Customs (Group 3 & 4) on 11.03.2000 declaring that Nestle India and Nestle Brazil were 'related persons' for the purpose of Customs Valuation Rules but the relationship between the buyer and seller had not influenced the price. The matter was referred by the Deputy Commissioner of the Group to the Special Valuation Branch (SVB).

(3.) IN regard to royalty and licence fee that Nestle India pays to Societe des Produits Nestle S.A. (at the rate of 3.5% of the sales value of the products sold within India and 5% of the F.O.B. value of exports sold outside India), the Deputy Commissioner, SVB, held that such payment is not related to import of POE and hence there is no requirement to add any amount to the value towards royalty and licence fee.