Cus - Valuation - Prima facie Royalty is payable on ‘reproduced' goods which had no relation with imported goods - applicants have made out case for stay
THE undisputed facts of the case are that the applicants are related to their foreign supplier. They had imported Gerbera Clump i.e tissue culture.
Legal Corner Icon — the image was hosted by the publisher and was not captured.[Gerbera is a genus of ornamental plants from the sunflower family. It was named in honour of the German botanist and naturalist Traugott Gerber. Gerbera is very popular and widely used as a decorative garden plant or as cut flowers. Gerbera is also important commercially. It is the fifth most used cut flower in the world (after rose, carnation, chrysanthemum and tulip.).]
As per the agreement, the applicants are required to pay royalty on reproduction of the plant from the import clumps.
The revenue is of the view that the payment of royalty is the pre-condition of the imported goods (and hence this is to be added into the AV).
Aggrieved by this stand of the Revenue, the applicant is before the CESTAT.
The Bench observed -
"4. Prima facie going through the terms of the agreement, we find that the royalty is payable on the reproduced goods, which had no relation with the imported goods. Therefore, applicants have made out a case for stay of operation of the impugned order. Accordingly, we stay operation of the impugned order."
As the issue is of recurring nature, the application for early hearing was also allowed.