Valuation (Customs) — Royalty paid to foreign collaborator for technical assistance — Amount whether includible in the transaction value ?

The Supreme Court Bench comprising Hon’ble Mr. Justice Syed Shah Mohammed Quadri and Hon’ble Mr. Justice S.N. Variava on 14-1-2002 after condoning the delay admitted the Civil Appeal No. D21264 of 2001 filed by Matsushita Television & Audio India Ltd. against the CEGAT Order No. 307/2001-A, dated 24-8-2001 and reported in 2001 (136) E.L.T. 1093 (Tri. - Del.) (Matsushita Television & Audio India Ltd. v. Commissioner). While admitting the appeal, the Supreme Court passed the following order :-

“Delay is condoned.

The appeal is admitted.

Issue notice on the application for stay returnable within four weeks.”

The Appellate Tribunal in its impugned order had held that royalty amount paid to foreign collaborator for technical assistance is includible in the transaction value of imported components in terms of Rule 9(1)(c) of Customs Valuation Rules, 1988 as technical assistance extended to supply of components also and hence there is clear nexus between payment of royalty and import of goods.

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