2002 (11) TMI 240 - AT - Central Excise

Summary

Issues:
Assessable value inclusion of transportation and service charges received from buyers of motor vehicles.

Analysis:
The appeal concerns whether transportation and service charges received from buyers of motor vehicles should be included in the assessable value. The appellants, engaged in manufacturing motor vehicles, argue that sales occur at the factory gate, making the transport charges not liable for inclusion. They also collect service charges for vehicle repairs during transit, which they claim should not be part of the assessable value. The Commissioner disagreed, citing previous Tribunal decisions. However, the appellants point out that these decisions were later overturned by the Supreme Court. They argue that property in the goods passes at the factory gate, as indicated by invoices and transport documents. The Revenue contends that title to the goods passes only upon delivery at the dealer's place, based on the agreement clause. The Tribunal finds no merit in the Revenue's argument, stating that the agreement terms do not contradict the Sale of Goods Act's definition of delivery. They reference a previous decision approved by the Supreme Court to support their conclusion. Examining the agreements, dealer requests for transport, and relevant documents, the Tribunal concludes that the appellants' case aligns with the Supreme Court decisions. The Tribunal sets aside the impugned order and allows the appeal.