Royalty and License Fees are not addable in Transaction value of Imported Parts and Components: CESTAT

The Customs Excise and Service Tax Appellate Tribunal (CESTAT) in Kolkata ruled that royalty and license fees are not to be added to the transaction value of imported parts and components. This decision came from the case involving M/s. Humboldt Wedag India Private Limited, a subsidiary of Humboldt Wedag GmbH, Germany. The Tribunal found that such fees do not influence the transaction value, aligning with the customs valuation rules. This ruling provides clarity on the valuation of imported goods for customs purposes.