COMMR.OF CUSTOMS(PORT) vs M/S J.K. CORPORATION LTD.

The Supreme Court upheld the decision of the Customs Excise and Service Tax Appellate Tribunal, affirming that the value of technical knowhow must be included in the customs valuation of imported equipment under Section 14 of the Customs Act, 1962. The Court established that both parts of the collaboration agreement are interdependent, and the payment for knowhow is a pre-condition for the sale of equipment. The appeal by the Revenue was dismissed, reinforcing the applicability of the precedent set in Tata Iron and Steel Company Limited vs. Commissioner of Central Excise and Customs Bhubaneswar.