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TMI Blog2019 (11) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... to the facts that whether the transaction value at which goods were 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 Roy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ants 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 Royalty Charges was not included in the assessable value, the excise duty is chargeable on the same accordingly, demand of Central Excise duty of ₹ 14,58,91,908/- was confirmed under Section 11A (4) of Central Excise Act, 1944 and interest under Section 11AA of Central Excise Act, 1944 was also demanded. A penalty of equal amount of duty i.e. ₹ 14,58,91,908/- was also imposed under Section 11AC of the Central Excise A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 (202) ELT 578 (SC) (m) Modipon Fibre Company vs. CCE, Meerut - 2007 (218) ELT 8 (SC) (n) CCE, Chandigarh vs. Nachiketa Paper Limited - 2008 (225) ELT 194 (P&H) (o) Pratibha Processors vs. UOI - 1996 (88) ELT 12 (SC) (p) Jaiswal Products vs. CCE, Delhi - 2016 (344) ELT 636 (Tri. Del.) (q) JK Tyre & Industries Limited vs. CCE, Mysore - 2016 (340) ELT 193 (Tri. LB) (r) Bharat Heavy Electrical Limited vs. CCE, K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble 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 will not make any difference as the same is admittedly stand included as Selling and Distribution expenses in the overall transaction value. It is evident from the Chartered Accountant's that Royalty Charges paid to foreign company stand included in the transaction value. The said certificate is reproduced below:- 6. It is also noteworthy that the show cause notice also admit that the Royalty Charges is shown as Sales & Dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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