N.K. Bajpai, Member (T)

1. This is an appeal against the orders of the Assistant Collector directing that the value of goods imported by the appellants from their collaborators, namely M/s. Trafag AG, Switzerland shall be loaded by 5% after disallowing any commission or discounts of special nature under Rule 4(3)(a) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988. On appeal to Collector of Customs (Appeals), New Delhi, this order has been upheld and hence this appeal to the Tribunal.

2. Briefly stated, the facts are that the appellants have entered into a Licence Agreement on 7th February 1985 for the manufacture of Laborstats, Ministats, Industats, Transmitters, etc. on the basis of which the Swiss firm supplies information in respect of technical data, basic process and engineering designs and drawings, documents, process know-how and secret formula. Besides the appellants pay to their collaborators royalty at the rate of 4 per cent of net and ex-factory sale prices minus excise duty and the landed cost and the imported components and standard bought out components for 5 years. As per Clause 22 of the Agreement, this Swiss firm holds 24.9% of th