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TMI Blog2000 (7) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... of the motor vehicles when the same are sold to the dealers in wholesale trade. 2. The instant appeal emanates from the Order-in-Original No. 3/73,84,87/Commissioner/CE/Cal. IV/Adjn/98, dated 29-1-1998 of Commissioner of Central Excise, Calcutta IV Commissionerate which disposed of two common issues covered by six Show-cause Notices for the period from 1-7-1985 to 31-3-1986. Of these two issues, the one relating to accrual of notional interest on the advances/deposits taken from their customers, was decided in favour of the appellant. The present appeal, therefore, covers only the second issue, as set out in the preceding para, which seeks for a decision of this Tribunal. 3. As a predude, it may be stated that M/s. Hindustan Motors Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intrinsic value of the vehicle at the manufacturer's factory gate, but merely ensure that the vehicle does not undergo or suffer misuse due to negligence. As per the trade practice, PDI of the vehicle is carried out to check whether there has been damage to vehicle during transit from factory to dealer and whether any parts are missing. The dealer includes in his retail price the cost of the PDI and the three intial running-in-services. The manufacturer gives a warranty against all manufacturing defects for a period of one year or 16,000 K.M. whichever is earlier. But it might happen that if the vehicle is not running in properly, by having the three intial services, spurious warrany claims could arise as for example, if the brakes are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... got no part of or share in it, excepting to ensure that the dealers are sufficiently qualified to render such services. Where there is a transfer of residence of the vehicles from one dealer's territory to another, the manufacturer gives co-ordination assistance by askings the dealer into whose territory the vehicle enters on transfer, to render the running service . At this stage, the learned Consultant emphasises that rendering of the after sales service during the running-in period has no nexus whatsoever with the manufacturer and no obligation has been cast upon him either for rendering such services or for answering any failure on the part of any dealer to render such services. The learned Consultant explains that the dealers render ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which covers the cost of after sales services is liable to be added to the assessable value. As regards the cost of the PDI which forms part of the dealer s margin, the said Bench of the Tribunal ruled that the same should not be included in the assessable value of the vehicle for arriving at the aforementioned decision. In arriving at the aforementioned decision, the Tribunal took note of the Apex Court s judgments in Bombay Tyre International Ltd. - 1984 (14) E.L.T. 1896 (S.C.); Voltas Limited - 1971 Tax L.R. 184 (Bombay H.C.); A.K. Roy v. Voltas Ltd. - 1977 (1) E.L.T. (J.177) (S.C.); Mahindra Mahindra Ltd. v. U.O.I. - 1984 (16) E.L.T. 76 (Bom); U.O.I. v. Mahindra Mahindra Ltd. - 1989 (43) E.L.T. 611 (Bom.); Standard Electrical Applia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the learned Commissioner s observation that these informations were made in some other context was not only fallacious but also erroneous and untenable. He went on to say that the facts disclosed being within the knowledge of various Central Excise officers, such disclosures cannot be segmented and treated as being in some other context and thereby illegally invoke the extended period of limitation under Section 118 of the CEA, 1944. 5. Shri N.C. Roychowdhury, learned Senior Advocate, assisted by Shri Prantosh Mukherjee, learned Advocate, who appeared for Revenue fairly concedes that the decision of the Delhi Bench of Tribunal in the case of Mahindra Mahindra and Maruti Udyog Ltd. is in favour of the appellant but submits that the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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