COMMISSIONER OF CENTRAL EXCISE Vs. SHS ELECTRONICS

JUDGEMENT

(1.) THE respondents are job workers for M/s. Roots Auto Products Ltd., (RAPL in short). During the material period, they manufactured goods (Horn Controllers) for RAPL out of raw materials supplied by the latter. They supplied the goods to RAPL after affixing with brand name "Root Auto" which belonged to RAPL. On such clearance, duty was paid on material cost plus job charges. The department took the view that the assessable value should have been loaded with royalty for brand name at the rate of Rs. 11/ - per piece. This was the rate at which M/s. RAPL had permitted certain other companies to use the brand name. The proposal for enhancement of value was resisted by the respondents. The original authority rejected their objections and included royalty charge at the rate of Rs. 11/ - per piece in the assessable value of the Horn Controllers cleared by the respondents to RAPL. The assessee's appeal against the decision of the original authority was allowed by the Commissioner (Appeals). Hence the present appeal of the Revenue.

(2.) LD . SDR reiterates the grounds of the appeal. Ld. Counsel for the respondents argues in justification of the impugned order.