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2019 (12) TMI 1647 - AT - Central ExciseValuation - cost of Pre-Delivery Inspection (PDI) and After Sales Service (ASS) charges required to be included in the assessable value of the motor vehicles sold by the appellant to the dealers or not - charges/expenditures are incurred by the dealers from their profit margin - HELD THAT - Both sides fairly agree that the issue is covered by the judgment of Hon'ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, MYSORE VERSUS M/S TVS MOTORS COMPANY LTD. 2015 (12) TMI 874 - SUPREME COURT . Their Lordships considering the issue in the context of amended Section 4 of Central Excise Act, 1944 w.e.f. 1.7.2000 observed that PDI charges and free ASS charges would not be included in the assessable value under Section 4 of the Act for the purposes of paying excise duty. The Pre Delivery Inspection (PDI) and After Sales Service (ASS) charges cannot be included in the assessable value of the motor vehicles - the appeals are allowed.
Issues involved: Determination of whether Pre-Delivery Inspection (PDI) and After Sales Service (ASS) charges should be included in the assessable value of motor vehicles sold by the appellant.
Analysis: - The appeals were filed against orders by the Commissioner of Central Excise, Pune-I, involving a common issue related to the inclusion of PDI and ASS charges in the assessable value of motor vehicles. - The main issue was whether these charges should be included when incurred by dealers from their profit margin. - Both sides agreed that the issue was covered by a judgment of the Hon'ble Supreme Court in the case of Commissioner of Central Excise, Mysore Vs. TVS Motors Co. Ltd. The Court held that PDI and free ASS charges should not be included in the assessable value under Section 4 of the Central Excise Act for excise duty payment. - The Court dismissed the Department's appeals and allowed the appeals filed by the assessees based on the Supreme Court's ruling. The Larger Bench view in Maruti Suzuki was overruled. - Consequently, the Pre-Delivery Inspection (PDI) and After Sales Service (ASS) charges were not to be included in the assessable value of the motor vehicles, leading to the allowance of the appeals.
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