The CESTAT held that the contract manufacturers (CMs) were not...

The CESTAT held that the contract manufacturers (CMs) were not the buyers of the imported parts and components; X Corp was the beneficial owner and therefore chargeable with differential customs duty. Royalties/license fees were held addable to transaction value under Rule 10(1)(c) and demand for duty could be made from the beneficial owner; extended limitation was invoked for willful suppression. Interest on delayed payment was confirmed. The goods were liable to confiscation under s.111(m). Penalty under s.114A was sustained against X Corp (precluding a concurrent s.112 levy); CMs were liable under s.112(a) and s.114AA. No penalties were imposed on the named executive. Differential duty with interest was confirmed and the matter was remanded to the OA to redetermine penalties. Appeal disposed.