Per Justice K.K. Usha : The appeal is at the instance of the importer M/s. Panalfa Dongwon India Ltd. The challenge is against the order passed by the Commissioner (Appeals) dated 29.8.2002. The issue arising for consideration is whether lump sum royalty of US $ 6,50,000 payable as consideration for (i) training of personnel, (ii) furnishing of technical information and (iii) utilisation of intellectual property rights and royalty of 2.5% on the net selling price of each licensed product manufactured and sold are required to be added to the invoice value of the capital goods, raw materials etc. imported by the appellant under Rule 9(1)(c) of the Customs Valuation Rules, 1988.

2. The appellant company was formed on a joint venture agreement dated 3.2.1996 between M/s. Panalfa Investments Pvt. Ltd. New Delhi, M/s. DCM Daewoo Motors Ltd. New Delhi and M/s. Dongwon Metals Industries Co. Ltd. Korea. Pursuant to the joint venture agreement the appellant was set up to manufacture, assemble and sell complete exhaust systems including catalytic converter. The parties have entered into an agreement of Cooperation and Technical Licence. Under the terms of the agreement the appellant was l