MITSUBA SICAL INDIA LTD. Vs. CC

JUDGEMENT

(1.) THIS is an appeal against order in Appeal dated 29.9.2003 passed by the Commissioner (Appeals), Chennai. The brief facts of the case are as follows. The Revenue proceeded against the appellant M/s. Mitsuba Sical India Ltd. on the ground that the appellant and M/s. Mitsuba Corporation, Japan who are foreign suppliers of the imported goods are related to each other as per Rule 2(2)(i), (ii) and (iv) of the Customs Valuation Rules, 1988. The original authority held that technical fee amounting to US 30,000 for the Viper Motor and Link system and US 80,000 for Fan Motor should be added to the transaction value and also the royalty amount paid or payable on all items may be added to transaction value of the respective components. The appellant approached the Commissioner (Appeals) who upheld the order of the original authority. Aggrieved over the decision of the Commissioner (Appeals), the appellant has come before this Tribunal for relief.

(2.) SHRI Section Murugappan, learned Counsel appeared for the appellant and Smt. R. Bhagyadevi, learned SDR for the Revenue.

(3.) THE learned Counsel invited our attention to the technical assistance agreement entered into between the appellant and the foreign supplier and emphasized the point that technical know -how fee and royalties are not related to the goods imported. The technical know -how fee is only in respect of the products to be manufactured by the appellant in India. In any case payment of technical know -how fee and royalty is not a condition of sale of the imported goods. Hence as per Rule 9(1)(c) of the Customs Valuation Rules, 1988, these charges are not includible in the assessable value. He maintained that the finding of the Commissioner (Appeals) has absolutely no basis. In this connection he relied upon the a number of case laws decided by the Tribunal. He cited the following case laws: