Inclusion of optional warranty charges in the assessable value under Section 4 - Question regarding - Central Excise - 6/10/86-CX.1

Inclusion of optional warranty charges in the assessable value under Section 4 - Question regarding F. No. 6/10/86-CX.1 Dated 14-4-1986 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Inclusion of optional warranty charges in the assessable value under Section 4 - Question regarding I am directed to refer to Board's telex issued from F. No. 6/10/86-CX.1, dated 7-2-1986 regarding inclusion of after sales service charges in the assessable value, consequent upon Supreme Court's judgment in the case of Bombay Tyre International Ltd. 2. As regards the specific issue as to whether 4 years optional warranty charges collected by the manufacturer from the wholesale buyer should be included in the assessable value under Section 4(1)(a) of the Central Excise Act, the Law Ministry have confirmed that such charges are liable for inclusion in the assessable value in the light of the principles enunciated by the Supreme Court in the judgment relating to Bombay Tyre International. A copy of the Law Ministry's advice is enclosed. (Not printed) 3. It may be noted that by Board's telex F. No. 15/177/83-CX.1 (Pt.), dated 28-10-1983 the earlier instructions contained in Board's letter F. No. 6/25/81-CX.1, dated 25-1-1982 had been superseded. It has been decided that assessments which may already have been finalised on the basis of the Board's instructions, dated 25-1-1982, may not be re-opened.