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2015 (9) TMI 1028 - SC - Central ExciseValuation - Inclusion of royalty amount - Rule 5 of the Central Excise (Valuation) Rules, 1975 - Held that:- A bare reading of Rule 5 would demonstrate that the additional consideration which flows directly or indirectly from buyer to the assessee can be added to the price which is charged by the seller from the buyer. On the contrary, in the present case, the royalty, which is treated as additional consideration is paid by the seller to the buyer. - The very basis of the show cause notice, in fact, was untenable and when the assessee is paying the royalty to LNL (buyer) and that too for using the brand name `NOVINO' which belongs to the buyer, the question of treating the same as "additional consideration" within the meaning of Rule 5 and adding to the price charged from the LNL for sale of the product could not arise. - Decided in favour of assessee.
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