Case Law Details
Royalty paid on import of Goods / prerecorded music cassette or a popular film to be included in the transaction value for Custom valuation – SC
Supreme Court has recently held in the case of CCE, New Delhi Vs. M/s. Living Media India Pvt. Ltd. that if a prerecorded music cassette or a popular film or musical score is imported into India, duty will necessarily have to be charged on the value of the final product. As per Rule 9, in determining the transaction value there has to be added to the price actually paid or payable for the imported goods, royalties and the license fees related to the imported goods that the buyer is required to pay, directly or indirectly, as a condition of sale of goods. Therefore, when prerecorded music cassette is imported as against the blank cassette, definitely its value goes up in the market which is in addition to its value and therefore duty shall have to be charged on the value of the final product. Therefore, there can be no dispute with regard to the fact that value of the royalty paid is to be included in the transaction value.
Commissioner of Customs Excise, New Delhi Vs. M/s. Living Media India Pvt. Ltd.
Decide by – Supreme Court of India
Dated of Decision – August 17, 2011
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