2011 (6) TMI 550 - AT - Central Excise

Stay - value of royalty, how much amount is to be includable on account of royalty and whether the appellants have included the value of royalty in the assessable value or not Held that - matter needs examination. appellant directed to deposit a 50% of the duty involved. appeal as well as stay application is disposed of

Summary

Issues: Valuation of CDs including royalty amount

Analysis:
The appeal before the Appellate Tribunal CESTAT, Mumbai involved a dispute regarding the valuation of CDs manufactured by the appellants, specifically concerning the inclusion of royalty amount in the assessable value. The Tribunal noted that the records did not clearly indicate the exact amount to be included on account of royalty and whether the appellants had correctly valued the product. As a result, the Tribunal directed the appellants to deposit 50% of the duty involved within four weeks and report compliance to the adjudicating authority. The adjudicating authority was instructed to examine whether the royalty cost had been included in the assessable value. The Tribunal emphasized that the matter must be decided within three months after compliance, allowing the appellants a reasonable opportunity to present their case. The appeal and stay application were disposed of accordingly, with the Tribunal highlighting the need for thorough examination of the royalty valuation issue.