Know-how fee in customs valuation requires proven nexus with import transaction; existing addition was remanded for reconsideration.

Technical information and know-how fee could be added to imported goods' transaction value only if a sufficient nexus with the import transaction was established under Rule 9(1)(c) of the Customs Valuation Rules, 1988. The existing findings were inadequate because the lower authorities relied mainly on an agreement clause and an assumption that raw material supply depended on payment of the fee, without properly examining the relevant documents. As the appellant's supporting material was not adequately considered, the addition could not be sustained on the record and the matter was remanded to the original authority for fresh consideration.

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Issues: Whether technical information and know-how fee was liable to be added to the transaction value of the imported goods under Rule 9(1)(c) of the Customs Valuation Rules, 1988.

Analysis: The dispute turned on whether the payment of technical-knowhow fee had a sufficient nexus with the import transaction so as to form part of the assessable value. The orders of the lower authorities rested on the agreement clause dealing with technology fees and on an assumption that supply of raw materials was contingent upon payment of the know-how fee, but the reasoning was found to be summary and unsupported by a proper examination of the relevant documents. The record also indicated that the appellant claimed to have produced material in support of its case, which had not been adequately considered.

Conclusion: The addition of the technical information and know-how fee to the transaction value could not be sustained on the existing findings, and the matter was remanded for fresh consideration by the original authority.

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