M/S MATSUSHITA TELEVISION &AUDIO (I)LTD vs COMMNR. OF CUSTOMS

The Supreme Court, in this civil appeal under Section 35L(B) of the Central Excise Act, 1944, upheld the Tribunal's decision that royalty payments made by the appellants to Matsushita Electric Industrial Co. Ltd. were to be included in the assessable value of imported components of Colour TVs. The Court found that the royalty was directly linked to the technical assistance provided for the components, as stipulated in the agreement. Consequently, the appeal was dismissed, affirming the Tribunal's ruling on the inclusion of royalty in the valuation of goods under the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988.