M/S. K.R.C.D. (I) PVT. LTD. vs COMMNR. OF CENTRAL EXCISE, MUMBAI

The Supreme Court ruled that the royalty paid by the appellant for duplicating CDs is not part of the assessable value for excise duty under the Central Excise Act, 1944. The Court emphasized that since the appellant was merely performing job work for the copyright holder, the royalty should not be included in the valuation of the goods. Consequently, the demand for differential duty based on the royalty was set aside, affirming the earlier decision of the Commissioner (Appeals).