PEPSI FOODS vs COLLECTOR OF CENTRAL EXCISE, CHANDIGARH

The Supreme Court addressed the issue of whether royalty payments for trademark usage are to be included in the assessable value of concentrates under the Central Excise Act, specifically Section 35L(b). The Court held that the royalty charges are intrinsically linked to the sale of concentrates, as the trademark license is granted only to those who purchase the concentrates, thus affirming the Tribunal's decision to include these charges in the assessable value. The appeals were dismissed, confirming the duty demand based on the inclusion of royalty in the price.