M/S Wep Peripherals Ltd vs Commissioner Of Customs, Chennai

The Supreme Court held that the adjudicating authority erred in loading the royalty/license fee onto the price of imported goods under Rule 9(1)(c) of the Customs Valuation Rules, as the royalty was not a condition of sale and the price was negotiated based on a bulk order. The Court emphasized that the correspondence between the importer and foreign supplier, indicating a price discount due to bulk orders, should have been considered. Consequently, the appeals were allowed, setting aside the erroneous judgments of the Tribunal.