Case Law Details
Commissioner of Customs (Imports) Vs Diabu Diamond Tools (I) Pvt. Ltd. (CESTAT Chennai)
CESTAT Chennai held that as transfer of technical knowhow not a condition for sale of capital goods, hence, technical knowhow fee not to be included in the assessable value of imported goods.
Facts- In Order-in-Original, it was directed to include the fee of Euro 40,000 for transfer of technical knowhow in the assessable value on import of new capital goods.
The importer had filed an affidavit stating that there is no change in technical collaboration / agency / distribution agreement / method of invoicing and also submitted relevant documents/affidavit and invoices.
After verifying the documents, the Special Valuation Branch directed to accept the invoice value for assessment purpose and to add technology transfer fee of EURO 40,000 to the invoice value on importation of the new capital goods by the importer and thus maintaining the earlier order.
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