Case Law Details
Commissioner of Customs Vs GH Induction India Pvt. Ltd. (CESTAT Chennai)
Introduction: In the case of Commissioner of Customs vs. GH Induction India Pvt. Ltd. before the CESTAT Chennai, the central issue revolved around whether royalty and technical know-how fees paid to a foreign collaborator should be included in the assessable value of imported goods for customs duty calculation. This article provides an in-depth analysis of the case and its implications.
Detailed Analysis: GH Induction India Pvt. Ltd. (the respondent) imported components for manufacturing Induction heating equipment. Due to their imports from a related foreign supplier, they underwent a Special Valuation Branch (SVB) investigation procedure.
Initially, SVB accepted the invoice value of the imported goods in an Order-in-Original. The department filed an appeal against this order, but the Commissioner (Appeals) upheld it. Subsequently, when the respondent applied for the renewal of the original order, the adjudicating authority continued to accept the invoice price as the transaction value, with no change in the terms and conditions.
The department appealed again, this time challenging the inclusion of royalty and technical know-how fees in the assessable value. However, the Commissioner (Appeals) upheld the original order, citing Rule 10(1)(c) of the Customs Valuation Rules, 2007.
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