2017 (2) TMI 308

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....ed in the manufacture of product  SELSUN falling under Chapter 30 of the Central Excise Tariff Act, 1985 in the brand name of SELSUN belonging 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 basis to M/s Pharmacia Healthcare Ltd. (formerly M/s Abbott Laboratories (India) Ltd.). The department has conten....

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....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 duty on the control sample, he submits that the control samples are required to be preserved even after expiry date for the purpose of any investigation that may be launched in case of drugs related medical enquiry. This requirement is mandatory under statutory provisions of Drugs & Cosmetics Rules. Therefore, the drawal of control sample is not liable to du....