Commnr. Of Customs Excise, New Delhi vs M/S. Living Media(India) Ltd

The Supreme Court addressed the valuation of imported Audio Compact Discs under the Customs Act, specifically examining the applicability of Rule 2(2) of the Customs Valuation Rules, 1988. The Court upheld the CEGAT's decision to set aside the Commissioner (Appeals) order, confirming that the assessable value should not include royalty and advertisement expenses. The Court emphasized that the transaction value must reflect the actual price paid or payable, leading to the conclusion that the earlier valuation by the Assistant Commissioner was incorrect.