Page 52 - ELT_15th July 2020_Vol 373_Part 2

A58 EXCISE LAW TIMES [ Vol. 373

ganj, against the CESTAT Final Order Nos. 50896-50898/2019, dated 16-7-2019
(Quest Retail Private Limited v. Commissioner). While admitting the appeal, the Su-
preme Court passed the following order :
“Delay condoned.
Appeal admitted.
Issue notice on the application for stay, returnable within three weeks.
Ms. Charanya Lakshmikumara, Advocate waives notice for the sole
respondent.”
The Appellate Tribunal in its impugned order had held that a perusal of
the agreement between importer and supplier indicate that franchise/royalty fee
has been paid for provisions of management, consultation, advice service and
training provided to the appellant in connection with use of product. Thus quan-
tum of royalty is based on volume of sale which is a post import activity. Since
payment aforesaid is not connected with import of goods, said charges are not
includible in assessable value. Tribunal relied upon various decisions of Tribunal
and also of Apex Court to say that if there is no nexus of royalty payment with
that of the imported merchandise and which relate to the subsequent marketing
thereof the same is not required to be included for the purpose of payment calcu-
lation of Customs duty on the imported goods, in terms of Customs Act, 1962
and Customs Valuation (Determination of Value Imported Goods) Rules, 2007.
REPRESENTED BY : Mr. B. Krishna Prasad, AOR, Ms. Vishaka and
Mr. Anmol Chandan, Advcoates, for the Petitioner.
Ms. Charanya Lakshmikumaran, AOR and Mr. Aditya
Bhattacharya, Advocate, for the Respondent.

Demurrage waiver for delay in clearance of import con-
signments at ICDs/CFSs due to lockdown on account
of COVID-19?
The Delhi High Court Bench comprising Hon’ble Mr. Justice Navin
Chawla on 26-5-2020 issued notice in the W.P. (C) No. 3195 of 2020, C.M. Nos.
11115, 11341, 11346 & 11336 of 2020 filed by Indian Agro and Recycled Paper
Mills Association against Central Board of Indirect Taxes and Customs.
The High Court tagged the present writ petition with earlier writ peti-
tion 3029 of 2020 titled M/s. Polytech Trade Foundation v. Union of India & Ors.
wherein an interim order was passed on 22-5-2020 not putting any restraint on
ICD/CFS to collect demurrage charges as per law. The High Court directed that
in terms of aforesaid order Container Freight Stations (CFSs) and Inland Con-
tainer Depots (ICDs) in minor ports shall be at liberty to demand such charges as
may be determined by them and petitioners are bound to pay them subject to
outcome of this petition. As far as the CFSs/ICDs in major ports are concerned,
Ss/ICDs were required to follow earlier directions dated 23-4-2020.
REPRESENTED BY : Mr. Koshy John, Mr. Manav Vohra, Mr. Prateek
Khanna and Mr. Shantanu Mathur, Advocates, for the
Petitioner.
Ms. Maninder Acharya, ASG, Mr. Amit Bansal, Senior
Standing Counsel, Mr. Vikram S. Nankani, Senior
EXCISE LAW TIMES  15th July 2020  52