Per Justice K. Sreedharan :

This appeal is by M/s. Daewoo Motors India Ltd. They are engaged in the manufacture of Ceilo brand cars in India. Earlier, to begin with, the appellant was known as DCM Daewoo Motors Ltd. With effect from 5.5.1997 this name was changed as shown in the appeal. Appellant is a joint venture between M/s. Daewoo Corporation of Korea and M/s. DCM Toyota Ltd., New Delhi. Manufacture of passenger cars was taken up with Technical and Financial Collaboration of M/s. Daewoo Motors Korea. Joint Venture Agreement dated 9.7.1994 was concluded whereby Daewoo Corporation was to purchase shares to become majority equity holder of 51% paid in capital of DCM Toyota Ltd. On 10.5.1994, a Technical Assistance Agreement was entered into between the two whereunder 11.8 million US $ was payable to Daewoo in consideration of the licences granted to appellant. Over and above this lump sum payment, royalty at 3% was also payable to Daewoo on the Vehicles and Spares for a period of five years. Royalty on wholesale price of spare parts and components either manufactured or assembled by the appellant or purchased from local suppliers at the rate of 3% was also payable to Daewoo Mo