License fee paid for the right to use software couldn’t be included in the customs valuation of imported CDs

HCL Technologies Ltd. Vs Commissioner of Customs (Adjudication) (CESTAT Delhi) Conclusion: License fee paid by HCL to SAP India could not be included in the transaction value of the CD imported from SAP Germany under Rule 9(1)(c) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 as license fee was held to be a payment for the right to use the software,  an intangible right and not a condition of sale of the physical CD containing the software. Penalty under Section 112(a) of the Customs Act, 1962 could not be imposed on either HCL Technologies Ltd. or SAP India P...