M/S Pepsi Foods Limited vs Collector Of Central Excise, ...

The Supreme Court addressed the issue of whether royalty charges collected by the appellant for the use of the trademark 'lehar' should be included in the assessable value of concentrates under Section 4 of the Central Excise Act. The Court held that the sale of concentrate and the collection of royalty are interlinked, establishing that the royalty is part of the transaction and must be included in the assessable value. Consequently, the appeals were dismissed, affirming the Tribunal's decision to include the royalty charges in the duty calculation.