New Delhi, Nov 29: The Supreme Court has upheld an order of the central excise tribunal directing that the assessable value of the concentrate provided by Pepsi to its bottlers should include the royalty that the multinational charges for the use of its brandname Lehar.
A division bench of Justices P.Venkatarama Reddi and A.R.Lakshmanan in a judgment said the tribunal was correct in including the trade mark in the “assessable value” of the concentrates.
The case dates back to the excise period between September 1, 1992 and December 31, 1993.
The assistant collector of central excise and customs, Patiala had issued showcause notices to the company when he became aware that the multinational company was charging royalty for the use of the brandname Lehar.
The notice proposed the inclusion of royalty charge in the assessable value and demanded duty on that basis.