2015 (9) TMI 1028

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....r. Udit Jain, Adv. Mr. Praveen Kumar, Adv For the Respondent : Mr. K Radhakrishnan, Sr. Adv. Mr. Sanjai Kumar Pathak, Adv. Ms. Rashmi Malhotra, Adv. Mr. Aviral Kashyap, Adv. Mr. B. Krishna Prasad, Adv ORDER First, facts in brief. The appellant is the assessee which is manufacturing torches, apart from other goods. These torches are manufactured and marketed under the brand name `NOVINO&#3....

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....cause as to why the amount of royalty be not added to the price which was charged by the assessee in the sale of the aforesaid product, to arrive at transaction value. The show cause notice indicates that while proposing such a step, the Commissioner had relied upon Rule 5 of the Central Excise (Valuation) Rules, 1975. The assessee questioned the veracity of this show cause notice taking number....

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....hich flows directly or indirectly from buyer to the assessee 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. We find force in this contention of the learned counsel for the appellant which is clear from the bare reading of Rule 5. Rule 5 is re....