2019 (11) TMI 9

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....oyalty Charges for technical knowhow during the period 2012-13 to 2014-15 but has not included this Royalty Charges in assessable value of finished goods as is evident from cost audit report furnished by the appellant whereas technical knowhow (Royalty Charges) are to be included in the assessable value, even if the goods are captively consumed, as per the guidelines issued by the Council of the Institute of Cost and Works Accountants of India on "Cost of production for Captive Consumption" under Cost Accounting Standard 4 (CAS-4). This has resulted in short payment of Central Excise duty. On this observation, show cause notice was issued to the appellant which was adjudicated by the Adjudicating Authority whereby it was held that since the....

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.... CCE vs. HMM Limited - 1995 (76) ELT 497 (SC) (d) CCE, Aurangabad vs. Bajaj Auto Limited - 2010 (260) ELT 17 (SC) (e) Anand Nishikawa Company Limited vs. CCE, Meerut - 2005 (188) ELT 149 (SC) (f) CCE, Mumbai vs. CMS Computers Pvt. Limited - 2005 (182) ELT 20 (SC) (g) Nizam Sugar Factory vs. CCE, A.P. - 2006 (197) ELT 465 (SC) (h) Dolphine Detective Agency vs. CCE, Belgaum - 2006 (4) STR 25 (Tri. Bang.) (i) PSL Corrosion Control Services Limited vs. CCE, Daman - 2009 (237) ELT 495 (Tri. Ahmd.) (j) CCE, Coimbatore vs. Best Cotton Mills Limited - 2009 (243) ELT 77 (Tri. Chennai) (k) CCE, Meerut vs. Fabrico India (P) Limited - 2010 (249) ELT 38 (Tri. Del.) (l) CCE, Chandigarh vs. Punjab Laminates Pvt. Limited - 2006 (....

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....e sold and excise duty was paid, included the Royalty Charges paid by the appellant to the foreign collaborators. The appellant, time and again maintained that the Royalty Charges is clearly included as Sales and Distribution Overheads. Therefore, there is no doubt that the Royalty Charges is included in the overall value of the excisable goods. After the amended valuation provisions, from 2000 onwards, the duty is chargeable on the actual transaction value at which the goods are sold and therefore, any overhead charges cost of manufacture or selling expenses, everything stand included in the transaction value of the finished goods. Therefore, only expenses on account of Royalty Charges not shown in the cost of manufacture of the product wi....