Case Law Details
Commissioner of Customs Vs Vestas Wind Technology India Pvt Ltd (CESTAT Chennai)
CESTAT Chennai held that the licence fee is includible in transaction value only when licence fee is paid as condition of sale. Accordingly, licence fee cannot be included to the transaction value when the same is not a condition of sale.
Facts- The respondent is engaged in the manufacture of a Wind Turbine Generator (WTG) suited for large wind farms. The respondents imported various parts and components and were found related to the supplier, M/s.NEG Micon AS Denmark. Earlier, the Special Valuation Branch (SVB) vide its order No.113/2001 dated 12.01.2001 issued directions to add the licence fee and service fee to the invoice value. After rounds of litigations, the Tribunal, Chennai set aside the said Order-in-Original and held that the licence fee payable is not related to the imported goods and also that it is not a condition of sale and need not be included in the invoice value. The Department accepted the order of Tribunal and the issue came to a settlement. A review order No.6124/2007 dated 30.03.2007 was issued accepting the invoice value for assessment purpose.
Later, the matter came up for periodical review and the original authority held that the respondent has to include the licence fee in the invoice value. The Commissioner (Appeals) set aside the said order. Aggrieved, the Department is thus before the Tribunal.
Conclusion- Held that the payment of licence fee is for each WTG commissioned. Thus, it cannot be said that the licence fee is a condition of sale of the parts and components imported by appellant.
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