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2017 (2) TMI 308 - CESTAT MUMBAI

2017 (2) TMI 308 - CESTAT MUMBAI - TMI - Valuation - 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. Th .....

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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. - E/206 to 209/06 - A/85358-85361/17/EB - Dated:- 13-1-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Jitendra .....

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onging to M/s Abbott Laboratories (India) Ltd. Unit of M/s Abbott Laboratories (India) Ltd. was taken over by M/s Pharmacia Healthcare Ltd. M/s Pharmacia Healthcare Ltd entered into a Registered User Agreement with M/s Abbott Laboratories, USA on 17.4.1987. According to the agreement, M/s Pharmacia Healthcare Ltd. (formerly M/s Abbott Laboratories (India) Ltd.) shall pay royalty of 2% of gross sale to M/s Abbott Lab., USA. The appellant manufactured SELSUN and sold on principal to principal basi .....

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has upheld the same vide impugned order. Therefore, the appellants are before us. 3. Shri Jitendra Motwani, learned Counsel along with Ms. Dhara Trivedi, Advocate appearing on behalf of the appellant submit that firstly though there is an agreement between the Pharmacia and Abbott USA regarding payment of royalty but in fact no royalty payment was made under this agreement. Therefore, there is no question of inclusion of royalty amount in the assessable value of goods manufactured by the appella .....

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that addition of amount on account of royalty was held applying Rule 6 of the Central Excise Valuation Rules, 2000, according to which only that amount of money value of any additional consideration can be added, which is flowing directly or indirectly from the buyer to the assessee. In the present case as submitted, no any amount is flowing from buyer i.e. M/s Pharmacia to the appellant. For this reason also, no addition can be made on account of royalty or otherwise. 3.1 As regards demand of .....

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. He further submits that the demand is time barred as there is no suppression of facts on part of the appellant. 4. Shri S.V. Nair, Learned AC (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 5. We have carefully considered the submissions made by both sides. We find that the issues to be decided by us are (i) 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 ma .....

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