COMMNR. OF CUSTOMS (PORT), CHENNAI vs M/S. TOYOTA KIRLOSKAR MOTOR PVT. LTD.

The Supreme Court addressed the valuation of imported capital goods under Rule 9(1)(c) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988, determining that royalty and know-how fees paid to the licensor must be included in the transaction value of the goods. The Court held that such payments have a direct nexus to the imported goods as they are essential for the manufacture of licensed vehicles. The appeal by the Revenue was allowed, overturning the CESTAT's decision that had favored the respondent.