TMI Blog2015 (9) TMI 1028X X X X Extracts X X X X X X X X Extracts X X X X ..... essee 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... INO'. Indubitably, this brand name `NOVINO' belongs to one M/s. Lakhanpal National Ltd. (hereinafter referred to as `LNL') The said LNL has entered into an agreement with the assessee under which LNL has allowed the assessee to use the aforesaid brand name. For this purpose the assessee is also paying royalty @ 2.5% in respect of sales of the aforesaid products to buyers, other than LN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... number of pleas/contentions. However, none of these contentions found favour with the assessee. The Commissioner, who passed the Order-in-Original dated 02.08.2000, confirmed the demand made in the show cause notice. The appeal of the appellant preferred against that order before the Customs, Excise and Serice Tax Appellate Tribunal (hereinafter referred to as `CESTAT') met the same fate as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is re-produced herein below: Rule 5. Where the excisable goods are sold in the circumstances specified in clause(a) of sub-section (1) of Section 4 of the Act except that the price is not the sole consideration, the value of such goods shall be based on the aggregate of such price and the amount of the money value of any additional consideration flowing directly or indirectly from the buyer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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