Full exemption under a notification can render royalty inclusion in assessable value unnecessary for determination.

Where goods are already fully exempt under a valid exemption notification, the question of including royalty paid to a foreign collaborator in assessable value does not arise for determination. The article explains that the goods in issue had been treated as maleic resins covered by Notification No. 157/81 and entitled to total exemption, so the filing of price lists after the notification did not change their exempt character. On that basis, ancillary valuation issues were treated as unnecessary to examine, and the revenue appeal was left without a basis for interference.

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Issues: Whether the royalty charges paid to the foreign collaborator were includible in the assessable value when the goods were already held to be fully exempt under Notification No. 157/81 dated 29-8-1981.

Analysis: The goods manufactured by the respondents had already been held to be maleic resins covered by the exemption notification and entitled to total exemption. Once the goods stood fully exempt, there was no occasion to examine the assessable value for the purpose of including royalty charges. The filing of price lists after the date of the exemption notification did not alter the position that the goods were wholly exempt.

Conclusion: The royalty issue was not required to be determined and the appeal failed.

Final Conclusion: The exemption finding was treated as decisive, leaving no basis to interfere with the dismissal of the revenue appeal.

Ratio Decidendi: Where goods are held to be fully exempt under a valid exemption notification, questions relating to inclusion of ancillary charges in assessable value do not survive for determination.

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