1985 (9) TMI 91 - SC - Central Excise

Supreme Court affirms exclusion of trademark value in excise duty calculation

The Supreme Court dismissed the appeals with costs, affirming that the value of trade marks should not be included in the assessment of excise duty on ... Valuation - Brand name Issues Involved: Appeal against High Court judgment allowing writ petitions against levy of excise duty.Judgment Summary:Issue 1: Dispute over value of goods for excise duty assessmentThe respondent, a company manufacturing goods for Nestle's, disputed the value of goods for excise duty assessment. The High Court quashed the orders of the excise authorities and the Government of India. The only question before the Supreme Court was whether the value of the trade marks should be included in the value of goods for excise duty levy. The Court upheld the High Court's decision, stating that the value of the trade marks cannot be added to the wholesale price for excise duty assessment.Key Details:- The respondent manufactured goods as per Nestle's specifications and affixed Nestle's trade marks on them.- The goods were sold to Nestle's at a wholesale price stipulated in the agreements.- The Court emphasized that the value for excise duty assessment is based on the wholesale price of goods with trade marks affixed, regardless of ownership of the trade marks.- The Court concluded that the value of Nestle's trade marks should not be added to the wholesale price for excise duty calculation.Outcome:The Supreme Court dismissed the appeals with costs, affirming that the value of trade marks should not be included in the assessment of excise duty on goods manufactured by the respondent.