Case Law Details
Doosan Bobcat India Pvt. Ltd. Vs Commissioner of Customs (CESTAT Chennai)
The issue is whether the amount of Rs.28.14 lakhs in the nature of payment of royalty can be included in the transaction value and whether it is a condition of sale. From the facts narrated above, it is seen that there is no agreement between the appellant or the foreign supplier. It is then difficult to understand whether the royalty is a condition for sale of the imported goods. In the present case, the appellant contends that they have made provision for royalty but they have not actually paid any amount and that the amount was reversed in the year 2014 – 15. The learned counsel for the appellant has produced the financial statements for the respective years. They have also furnished the Chartered Accountant’s certificate. Besides these, the entries in the ledger / books of accounts have to be examined. In such circumstances, we deem it fit that the matter requires to be remanded to the adjudicating authority who shall look into the aspect whether the appellant has paid royalty to the foreign supplier or not. In case, the appellant has not paid such amount, there is no question of including the same in the transaction value.
In the result, the impugned order is set aside to this effect and the matter is remanded to the adjudicating authority who shall reconsider the issue as per the above directions.
FULL TEXT OF THE CESTAT CHENNAI ORDER
Brief facts are that M/s. Doosan Bobcat India Pvt. Ltd. (formerly known as M/s. Doosan Infracore India Pvt. Ltd.), the appellant herein, is a registered company under the Companies Act. They imported excavator, machine tools and parts and accessories from M/s. Doosan Infracore Co. Ltd. South Korea. The supplier being related company, the Special Valuation Branch (SVB) took up the matter for examination. Accordingly, the Assistant Commissioner as per Order in Original No. 7731/2008 dated 4.6.2008 held that the price declared was on par with contemporaneous imports made by unrelated buyers and therefore accepted the declared price as the transaction value in terms of Rule 3(3)(a) of Customs Valuation Rules, 2007. The imports made from 4.6.2008 to 3.6.2011 were finalized accordingly.
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