https://www.taxtmi.com/caselaws?id=264360 Royalty paid by an assessee to a brand owner could not be added to the sale price as additional consideration under Rule 5 of the Central Excise (Valuation) Rules, 1975. The SC held that only consideration flowing directly or indirectly from the buyer to the assessee can be included in assessable value; a payment made by the assessee to the buyer for use of the buyer's brand name does not meet that requirement. On that basis, the show cause notice and demand founded on inclusion of the royalty were unsustainable. en-us Thu, 03 Sep 2015 00:00:00 +0530 Thu, 31 Dec 2015 12:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=264360 Royalty paid by an assessee to a brand owner could not be added to the sale price as additional consideration under Rule 5 of the Central Excise (Valuation) Rules, 1975. The SC held that only consideration flowing directly or indirectly from the buyer to the assessee can be included in assessable value; a payment made by the assessee to the buyer for use of the buyer's brand name does not meet that requirement. On that basis, the show cause notice and demand founded on inclusion of the royalty were unsustainable. Case-Laws Central Excise Thu, 03 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=264360