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2011 (4) TMI 696 - AT - Central ExciseDemand - Assessable value on MRP basis - respondents charged Rs.300/- per washing machine towards optional service charges in addition to the price of the washing machine from the dealers uniformly without any condition - Revenue has challenged the decision passed by the Commissioner (Appeals) in the respondent s own case for earlier period wherein it was held that after sales service charges for four years being optional, not includible for valuation while determining MRP under Section 4A of Central Excise Act, 1944 - Decided in favour of the assessee
Issues Involved:
Revenue's appeal against the order regarding optional service charges in assessable value under Central Excise Act, 1944. Analysis: The case involves a dispute over the optional service charges of Rs.300 per washing machine collected by the respondents from dealers in addition to the price of the washing machine. The Revenue contended that these charges were not optional and should be included in the assessable value. The Commissioner (Appeals) allowed the respondent's appeal based on a previous decision in the respondent's own case, where it was held that such charges are not required to be added to the assessable value. The Revenue challenged this decision before the Appellate Tribunal, arguing that the issue had not attained finality as the earlier decision was under appeal. However, the Tribunal noted that a previous order had already settled the issue, stating that after-sales service charges are optional and not includible for valuation under Section 4A of the Central Excise Act, 1944. Since the Revenue did not challenge this earlier decision before higher authorities, the Tribunal upheld the precedent and rejected the Revenue's appeal. In conclusion, the Appellate Tribunal, Mumbai, dismissed the Revenue's appeal against the order regarding the inclusion of optional service charges in the assessable value under the Central Excise Act, 1944. The Tribunal relied on a previous decision that established the optional nature of such charges and their exclusion from valuation. As the earlier decision had not been challenged further, the Tribunal upheld the precedent and rejected the Revenue's appeal.
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