Commissioner Of Customs vs M/S Ferodo India Pvt. Ltd

The Supreme Court addressed the interpretation of Rule 9(1)(c) and Rule 9(1)(e) of the Customs Valuation Rules, 1988, in the context of royalty and technical know-how fees related to imported goods. The Court held that such fees must be included in the transaction value of imported goods only if they are a condition of sale, as per Section 14 of the Customs Act, 1962. The Court upheld the Tribunal's decision that the fees were related to goods produced in India, not the imported goods, thus affirming the Tribunal's order and dismissing the Department's appeal.