M/S GMR ENERGY LTD. vs COMMR.OF CUSTOMS,BANGALORE

The Supreme Court addressed the valuation of imported parts under the Long Term Assured Parts Supply Agreement (LTAPSA) and the applicability of exemption notification No.21 of 2002. The Court held that the customs department's attempt to add 1/3rd of the value of replaced parts to the invoice value was not justified, as the payments had already been made based on fired hour charges. The judgment clarified the interpretation of customs valuation rules, emphasizing that the declared value should be accepted unless proven otherwise by the department.