Per Justice K.K. Usha : In this appeal at the instance of the importer the issue that is coming up for consideration is whether the amount of UK Pound 50,000 payable as technical know-how fees by the importer is liable to be included in the assessable value of the goods imported.

2. M/s. S.D. Technical Services Pvt. Ltd. was permitted by the Ministry of Industry to have a foreign collaboration with M/s. Westing House Brake Signal Company Ltd. U.K. (for short, WBS) for the manufacture of AIR Brake Distributors and pneumatic Door Closers. Under the agreement between the appellants and WBS an amount of U.K. Pound 50,000 is to be paid by the appellant to WBS in lieu of disclosure of technical know-how. As per agreement the appellants are given the right to manufacture and assemble in India licensed equipment for use in railway locomotives and rolling stock with the technical know-how supplied by the WBS. Agreement also provided for training by WBS to employees of the appellants. Appellants were to manufacture licensed equipment strictly in accordance with the manufacturing information and specifications supplied by WBS and the appellants are to mark the Licensed Equipment with a