2010 (10) TMI 342 - AT - Central Excise

Valuation - The appellants who were manufacturers of synthetic sandwich spindle tapes and flat transmission belts, supplied New Year diaries to their dealers/buyers at 25% of the cost of the diaries - The amount collected by the appellants towards supply of the diaries has been included in the assessable value of the excisable goods by the Department leading to this appeal - Assessee appeal is allowed as per the decision in the case of CCE, Chandigarh v. Punjab Tractors Ltd.- Hence, the cost of such diaries cannot be added to the assessable value.

Summary

The Appellate Tribunal CESTAT, Chennai ruled in favor of the appellants who supplied New Year diaries to dealers at 25% of the cost, excluding the diary cost from the assessable value of excisable goods. The decision was based on the case law of CCE, Chandigarh v. Punjab Tractors Ltd. The impugned orders were set aside, and the appeal was allowed with consequential benefit to the appellants.