Schenck Process India Private Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata held that the payment of Management Fee and the License Fee not being relatable to the imported goods and condition precedent to the sale of imported goods are therefore not includible in the transaction value.
Facts- The present appeal is filed by the assessee and the short question in the present appeal revolves around the aspect of inclusion of Licence Fee and Management Fee in the assessable value of the goods imported from related parties.
Conclusion- Larger Bench of the Tribunal in the case of Panalfa Dongwon India Ltd. v. Commissioner of Customs, Mumbai, wherein it was clarified that royalty payable is required to be necessarily in connection with the import of the goods and that related to downstream production/training etc. being nowhere related to imported goods were not required to be a part of the transaction value.
Held that the payment of Management Fee and the License Fee not being relatable to the imported goods and condition precedent to the sale of imported goods are therefore not includible in the transaction value. We therefore set aside the order of the lower authority and allow the appeal with consequential relief, if any, as per law.
