PILLAR INDUCTION INDIA LTD. Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THIS appeal is against the Order -in -Appeal C. Cus., 258/2003, dated 30 -5 -2003 passed by Commissioner of Customs (Appeals), Chennai. The appellants during January 2001 to March 2001 imported parts of power supply from M/s. Pillar Industries, USA. These parts are for use in the manufacture of furnace and heating equipment. The transaction value was not accepted initially. The Deputy Commissioner (SVB) passed an order holding that technical know -how fees should be added to the transaction value. Against the order of the Deputy Commissioner (SVB) the appellants appealed to the Commissioner (Appeals) who set aside the Order -in -Original and held that technical know -how fees is not includible in the assessable value in terms of Rule 9(1)(c) of the Customs Valuation Rules, 1988, The Revenue filed an appeal to CEGAT. CEGAT passed Final Order dated 18 -3 -2002 remanding the matter for de novo consideration. The Commissioner (Appeals) held that the technical know -how package provided by the foreign supplier is all encompassing in the form of detailed designs, drawings and assistance in selection and procurement of material, plant, machinery, etc. Therefore, the technical know -how could be the basic blue -print to generate the licenced product from the imported components/machinery/raw materials. On the above reasoning, the Commissioner (Appeals) held that the technical know -how fee is addable as per provision of 9(1)(c) of the Customs Valuation Rules, 1988. Aggrieved over the order of the Commissioner (Appeals), the appellants have come before this Tribunal for relief.

(2.) SHRI C. Sarvanan, ld. Advocate appeared on behalf of the appellants and Shri B.L. Meena, ld. SDR for the Revenue.

(3.) LD . SDR reiterated the findings recorded by the Commissioner (Appeals).