M/S. WEP PERIPHERALS LTD. vs COMMISSIONER OF CUSTOMS, CHENNAI

The Supreme Court held that the adjudicating authority erred in loading the royalty/licence fee onto the price of imported shuttles 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 the foreign supplier, indicating a price reduction due to bulk orders, should have been considered. Consequently, the Court set aside the Tribunal's judgment and allowed the appeals, affirming the appellant's position.