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2017 (2) TMI 308 - AT - Central ExciseValuation - royalty - Whether royalty as per the agreement between the buyer of the goods and Abbott, USA is includible in the assessable value of the appellant, who is manufacturer supplier? - Held that: - there is an agreement between the Pharmacia and Abbott, USA with regard to payment of royalty of 2% of sale of the goods, but the fact is that no such payment/transactions were made either between Abbott USA and Pharmacia or even with the appellant. Therefore, even though there is a clause of royalty payment but since payment transaction was not made, there is no question of inclusion of any amount in the assessable value of the goods - no addition on account of royalty in the assessable value of the goods is sustainable - duty demand set aside. Levy of duty - control samples - Whether the control sample is liable to excise duty? - Held that: - control sample drawn from the production stock and preserved for check for purpose of market complaint or the complain from the patient, is not liable for excise duty - the issue has been decided by the Tribunal in the case of Dabur India [2005 (2) TMI 166 - CESTAT, NEW DELHI], where it was held that the drawal of control sample is not liable to duty. Demand set aside - penalty set aside - appeal allowed - decided in favor of appellant.
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