2005 (3) TMI 655

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....ts made by the appellant under Rule 9(l)(c) of the Customs Valuation Rules, 1988. In the impugned order the Commissioner (Appeals) has decided that the above mentioned amount is includible in the assessable value. The decision of the Commissioner (Appeals) is under challenge in this appeal. 2.Shri N. Venkataraman, ld. Counsel appeared on behalf of the appellants and Shri A. Jayachandran, ld. DR for the Revenue. 3.Ld. Counsel submitted that the items of import in this case are 2 sets of models and 3 moulds and some plastic components. The collaboration agreement is for the manufacture of contract products which are mentioned in Annexure-I of the agreement dated 5-8-85. As per the agreement the following are the contract products to be ....

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....p;     The Larger Bench in this case had held that value of the imported equipment cannot be loaded with the value of technical know-how fee related to indigenous manufacture of licensed equipment and not to the imported goods. (iv)    Union of India v. Mahindra & Mahindra Ltd. [1995 (76) E.L.T. 481 (S.C.)]           The Hon'ble Supreme Court in this judgment had held that technical know-how fee cannot be added to the value of the CKD packs of Engines supplied to Indian manufacturer by the overseas supplier of technical know-how. The court had observed that "there is no material to indicate any nexus between the lump sum payment and supply of CKD packs at ....

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.... paid definitely has a nexus with the imported goods. Therefore under Rule 9(1)(c) of the Customs Valuation Rules, 1988, the technical know-how fee is includible. Ld. JDR referred to para 2.1 of the collaboration agreement. Para 2.1 refers to Technical Documentation as per Annexure-II. Annexure-II lists the technical documentation to be supplied. Para A.1 of the Annexure II reads as follows :- "A.1 Design drawings and working drawings for greenware for each Model and Material Specifications of materials to be used in the Contract Product and the Moulds". The contention of the ld. JDR is that a combined reading of the Annexure and the para relevant to the payment of technical know-how indicates that payment of technical know-how fees i....