ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 17.09.2025
CESTAT Bangalore- Technical assistance fees not to be included in the value of imported goods
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, the inclusion of technical assistance fees in the assessable value of imported goods under Rule 10(1)(c) of the Customs Valuation Rules, 2007 (CVR) was thoroughly examined. The case, involving M/s. Seiren India Pvt. Ltd., sheds light on the nuanced interpretation of customs valuation laws and the distinction between pre-import and post-import activities. This decision is a landmark in clarifying the scope of Rule 10(1)(c) and its application to technical assistance fees.
Background of the Case
M/s. Seiren India Pvt. Ltd., a subsidiary of Japanese companies, entered into an “Assistance and Service Agreement” with its overseas parent entities for technical, marketing, and other assistance required for setting up a manufacturing facility in Mysore. The company imported raw materials, consumables, and capital goods, including tools and spares, from related and unrelated suppliers. The dispute arose when the adjudicating authority added the technical assistance fees paid by the appellant to the value of imported goods, citing Rule 10(1)(c) of CVR, 2007. This decision was upheld by the Commissioner (Appeals), prompting the appellant to approach CESTAT.
Connected Matter
Source: CESTAT Bangalore
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