2001 (10) TMI 222

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..... M/s. Otto India Private Ltd., is whether technical know-how is includible in the assessable value of goods imported by them. 2. Shri P.R. Biswas, learned Consultant, submitted that the Appellants, in association with M/s. Humboldt Wedag India Ltd. (HWIL), entered into a turnkey contract dated 23-5-94 with M/s. Steel Authority of India (SAIL) for design, manufacture, supply of equipment, steel st .....

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..... m the Minutes of Meeting held on 30-6-93 between M/s. HWIL and the Appellants and also from the Memorandum of Understanding dated 10-8-93; that they had purchased the machinery and equipment from them on the basis of commercial transaction on principal to principal basis. The learned Consultant, further, submitted that in view of these facts it is incorrect on the part of the Revenue to hold that .....

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..... n it is mentioned that the Appellants in association with HWIL entered into turn key contract for Coal Washery Modernisation on the strength of technical know-how provided by M/s. HWIL's foreign collaborator M/s. KHD Humboldt Wedag A.G., Germany; that Humboldt Wedag, Germany informed M/s. SAIL under letter dated 13-1-94 regarding supply of technical know-how, specific equipments and spares etc. wi .....

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..... collaborators in Germany. It is also mentioned by the Appellants in the Memorandum of Appeals that they were "obliged to purchase and import certain machinery and equipment from them on the basis of normal commercial transaction on principal to principal basis with a view to ensure that the performance of the plant could be guaranteed by them, which was one of the conditions insisted upon by SAIL- .....

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..... they would not have got the contract of SAIL. In view of these facts it is evident that the import of the impugned goods was directly connected with the supply of technical know-how. The learned Commissioner (Appeals) has rightly relied upon Rule 9 of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 which provides, inter alia, that in determining the transaction value, .....

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