2015 (11) TMI 965 - SCH - Central Excise

Valuation of goods - whether the amount collected by the respondent assessee @ 1% on the invoice value, as incentive, is includible in the value of goods on payment of central excise duty - Held that - scheme is that of the dealers/agents; dealers are seeking help from staff of the respondent to manage and service the scheme. The findings of the original authority also confirmed that the scheme was meant for buying the gifts for dealers and distributors. If the money received from the dealers and distributors is spent on their behalf, the same cannot be treated as additional consideration flowing back to the manufacturer. Therefore, we do not find any reason to interfere with the findings of the Commissioner(Appeals) - Decided against Revenue.

Summary

The Supreme Court dismissed the appeals regarding the inclusion of an incentive amount in the value of goods for central excise duty payment. The Court upheld the Tribunal's decision that the incentive collected by the respondent assessee from dealers and distributors was not additional consideration to the manufacturer.