Pepsi Foods Ltd. vs Commr. Of Cus. And C. Ex. on 26 September, 2002
2. We have heard learned SDR and perused the record. None appears for the respondents in spite of notice. We find that royalty is payable on indigenous value addition of the product. It cannot be added to the value of imported components. Reliance placed by the Revenue on the decision of the Apex Court in Pepsi Foods Ltd. v. Commissioner - 2004 (171) E.L.T. A129 (S.C.) is misplaced for the reason that the question before the Apex Court was the inclusion of royalty collected from bottlers on beverages manufactured from concentrate supplied by the assessee in the assessable value of the concentrates sold, and issue did not relate to addition of royalty to value of imported item. We, therefore, see no merit in the present appeal and accordingly dismiss the same.