Per C.N.B. Nair:

The appellant M/s. Ferodo India (Pvt.) Limited is a subsidiary of M/s. TN International Ltd., U.K. from August 1998. Prior to that appellant was a joint venture with 51% share holding by the same M/s. TN International Ltd., U.K. Thus, the appellant has always been a related person of M/s. TN International Ltd., U.K.

2. The present appeal is directed against impugned orders which held that in respect of imports of capital goods, spares and accessories thereof, and raw materials by the appellant from their related persons namely TN International and its associates and subsidiaries, addition @ 17% is required to be made to the sale price of the goods in consideration of royalty and technical know how fees payable by the appellant to M/s. TN International. The above addition has been ordered in view of the provisions contained in Rule 9 (1) (c) of Customs Valuation Rules, 1988. During the hearing of the case, learned SDR pointed out that the addition would be justifiable in terms of Rule 9 (1) (e) also as indirect considerations also have to be taken into account while assessing goods to duty.

3. The legal provision being pressed into service by the Customs auth