EID PARRY (INDIA) LTD. Vs. CC

JUDGEMENT

(1.) THE issue for decision in this appeal is whether technical know -how fee amounting to SEK 2.5 million as per the collaboration agreement between the appellant (M/s. EID Parry (India) Ltd.) and M/a. TFO Sanitar would be includable to the value of the imports made by the appellant under Rule 9(1)(c) of the Customs Valuation Rules, 1988. In the impugned order the Commissioner (Appeals) has decided that the above mentioned amount is includable in the assessable value. The decision of the Commissioner (Appeals) is under challenge in this appeal.

(2.) SHRI N. Venkataraman, Id. Counsel appeared on behalf of the appellants and Shri A. Jayachandran, Id. 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 5.8.1985. As per the agreement the following are the contract products to be manufactured by the appellants in India on the basis of the technical know -how supplied by the foreign collaborator. (1) Wash Basins (2) Pedestal (3) Water Closets (4) Bidets (5) Mirror Shelves (6) Cistern for low volume water closes [World Bank Cistern]. Ld. Advocate urged that technical know -how fees paid to the foreign collaborator has no nexus with the items of import. Ld. Advocate relied on the following case laws to buttress his case: