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TMI Blog2017 (10) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... hould not have ordered remand beyond the parameters of the grounds of appeal which he has himself taken note of at the beginning of the order - we order modification of the impugned order to the extent that the remand and de novo adjudication ordered by the Commissioner (Appeals) will only be restricted to the grounds of appeal preferred by the department - matter on remand, by way of modification in impugned order. - C/40630/2015 - Final Order No.42209/2017 - Dated:- 20-9-2017 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Hari Radhakrishnan, Advocate For the Appellant Shri B. Balamurugan, AC (AR) For the Respondent ORDER Per Bench The facts of the case are that ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt had made an entry in its books of account in the year 2013, the said amount was never paid to the foreign supplier and there was never any agreement with the foreign supplier for payment of the royalty amount. In fact, this entry made in the books of accounts was also reversed subsequently. In any case, the said royalty amount was calculated on the net value addition made excluding the cost of raw materials and was therefore, not related to the imported goods. Therefore, in terms of the decision of the Hon ble Supreme Court in the case of Ferodo India Pvt. Ltd. - [2008 (224) ELT 23 (SC)] such payment of royalty is not includible to the assessable value. (iii) The Commissioner has travelled beyond the scope of appeal made by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he importer could have imported the goods without paying the royalty or was the importer free to import the goods from any other supplier. If answer to this in negative, the royalty warrants addition in the value in terms of Rule 10(1)(c) (e) of CVR, 2007. Furthermore, in view of explanation under Rule 10(1)(c) (e) of CVR, 2007, such payments warrants addition in the value even if these are for post import activities. It is to mention that payment of royalty on an amount net of taxes is only a method of computation of royalty and it cannot be made a basis for non-addition of royalty in the value. 6. We thus find that the department was aggrieved only with non-addition of royalty in the assessable value. 7. Even in the impugned o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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