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2018 (5) TMI 478 - AT - Central ExciseValuation - inclusion of royalty in assessable value - whether running royalty paid by M/S KCSSL is includible in the assessable value of the goods cleared from Mundhwa unit? - Held that: - the running royalty though measured on the basis of value of sale is in respect of techn010U provided for manufacture of goods. In article 3 of the said agreement, it is envisaged that transfer of is in respect of Specialty Alloy Facilities. Exhibit A of the said agreement listed alloy grades, which will be licensed in the agreement - it is apparent that the technology transfer is used at the stage of casting. In other words, the products manufactured in Mundhwa unit namely, Bloom and Bars, being casting product already contained the technology transfer in the shape of specialty alloy. Thus it is apparent that the transferred technology is contained in the intermediate product cleared by the Mundhwa unit. The running royalty is includible in the assessable value of blooms/bars cleared by the KCSSL, as the royalty is not in the nature of brand or IPR but in the nature of Techn0104' Transfer Fee for the purpose of Casting Specialty Alloy. Extended period of limitation - Held that: - the appellant has claimed that its unit at Ranjangaon is entitled to CENVAT Credit of the duty paid at Mundhwa unit. The said claim has not been contested by the Revenue - extended period cannot be upheld. Penalty u/s 11AC - Held that: - In view of the fact that no allegation of suppression/misdeclaration can be upheld, the penalty under Section 11AC is set aside. Appeal allowed.
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