Case Law Details
Commissioner of Customs Vs Michelin India Pvt Ltd (CESTAT Chennai)
CESTAT Chennai held that inclusion of royalty and technical know-how in the assessable value of the imported products unjustified as relationship has not influenced the pricing pattern.
Facts- The Respondent requested for registration in Special Valuation Branch (SVB) for their imports from M/s. Manufacture Francaise Des Pneumatiques Mechelin (MFPM), France and its group companies and subsidiaries.
Notably, it was held by the adjudicating authority that the royalty paid by Respondent during 2014-2015 to the overseas supplier and also further royalty payments, whenever made, has to be included in the transaction value as per Rule 10 (1) (c) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.
Being aggrieved, the Respondent filed appeal before the Commissioner (Appeals). Commissioner (Appeals) set aside the order of adjudicating authority to the extent of directing to add the royalty payment in the assessable value. Being aggrieved, the Department has preferred the present appeal.
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