CESTAT allowed the appeal and set aside the duty demand. The...

CESTAT allowed the appeal and set aside the duty demand. The Tribunal held that payments to a domestic third party were for services performed in India, were not payable to the seller, did not accrue to the seller as consideration for the imported goods, and therefore could not be included in transaction value under the Valuation Rules. The work performed was not a "condition of sale" of the goods. Further, CKD kits (engine, gearbox, transmission) remain non-motor vehicles until assembled; "preassembled" requires independent but unintegrated subassemblies, entitling the imports to the concessional/lowest duty rate. The demand and adverse adjudication against the appellant were quashed.