Valuation (Customs) — Know-how fee made to M/s. Toshiba for drawings, designs etc. of proprietary equipment manufactured by M/s. Mitsubishi and imported whether to be included in assessable value ?

The Supreme Court Bench comprising Hon’ble Mr. Justice S.P. Bharucha, Hon’ble Mr. Justice Doraiswamy Raju and Hon’ble Mr. Justice Y.K. Sabharwal on 23-3-2001 admitted the Civil Appeal No. 1729 of 2001 filed by BPL Display Devices Ltd. against the CEGAT Order No. 864/2000-A, dated 27-10-2000 and reported in 2001 (130) E.L.T. 156 (Tri. - Del.) (Uptron Colour Picture Tube Ltd. v. Commissioner). While admitting the appeal, the Supreme Court passed the following order :-

“Application for permission to file additional documents is allowed.

Appeal admitted.”

The Appellate Tribunal in its impugned order had held that know-how fee made by assessee includes payment for drawings, designs etc. of proprietary equipment of M/s. Toshiba manufactured by M/s. Mitsubishi. Since this was a case of indirect supply to manufacturer of imported goods of design, drawing etc. developed abroad at the cost of importer, the know-how fees is includible in the assessable value of imports.