Lajja Ram, Member (T)

1. This is an appeal filed by M/s. Andhra Petro Chemicals Ltd., Tanuku, Andhra Pradesh (hereinafter referred to as 'APL'), against the Order No. S/50/3/90-SVB, dated 16-4-1992, passed by the Additional Collector of Customs, Customs House, Madras.

2. APL had entered into agreements with M/s. Davy Mekee (London) Ltd., UK (hereinafter referred to as 'DML')/for supply of equipment and materials, for technical know-how and for servicing of the plant proposed to be erected by them at Vizag in Andhra Pradesh, for the manufacture of Oxo-alcohols.

3. Under F. No. S/50/8/90/SVB, dated 10-1-1992, it was proposed to load/adjust the invoice value of imports of capital goods, by APL, from DML, by 35.28% on CIF value, under Rule 9(1)(b)(iv) of the Customs Valuation (Determination of Price of Imported Goods) Rules, 1988 (hereinafter referred to as the 'Valuation Rules'). A working sheet showing the basis of arriving at the said loading factor was enclosed.

4. Under letter dated 7-2-1992, the facts, reasons and evidence on record, which established payment of design and drawing charges/fees to the foreign collaborators, on whose basis it was proposed to load/adjust the invoic