COLLECTOR OF CUTOMS,AHMEDABAD vs M/S.ESSAR GUJARAT LTD.

The Supreme Court addressed the issue of whether the licence fees paid to M/s. Midrex International B.V. should be included in the invoice value of a plant purchased by M/s. Essar Gujarat Limited (EGL). The Court held that the transfer of the operation licence was a condition of sale, and without it, the sale would not have been valid. The judgment clarified that while the licence was necessary for operational purposes, it was also a condition that had to be fulfilled for the contract to proceed, thus affirming the Collector of Customs' position.