Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 2003 (11) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2003 (11) TMI 76 - SUPREME COURTWhether the royalty amount collected by it from the bottlers for use of the trademark 'lehar' on the soft drink beverages manufactured out of the 'concentrate' sold by the appellant is includible in the assessable value of the concentrates? Held that:- There was no obligation on the assessee to purchase CKD packs at all, that long before the supply of the CKD packs and spares, the royalty due to the collaborators was paid, that there was no material to show that the supply of the CKD packs or spares weighed with the parties in fixing the payments under the collaboration agreement were all taken into account by the Court to conclude that no nexus existed between the lumpsum payment under the agreement for the technical know-how and the determination of the price for supply of CKD packs/spares. It was under those circumstances the royalty payment was excluded from the assessable value of the concentrate. The distinguishing features are self-evident from the observations quoted above. In the result we affirm the decision of the Tribunal and dismiss the appeals. However, we leave it open to the assessee to raise any question as to the computation i.e., the quantum of royalty includible, before the adjudicating authority who has to recompute the turnover in any case consequent upon the Tribunal granting partial relief to the appellant. We affirm the decision of the Tribunal and dismiss the appeals.
|