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TMI BlogCentral Excise - Inclusion of cost of after sales services during the initial running in period of the vehicle by the dealers to their own buyers in the assessable value of the vehicle - Delhi High Court decision dated 9.9.98 in the case of M/s Hindustan Motors Ltd. v. Union of IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... se of M/s Hindustan Motors Ltd. v. Union of India - regarding. A copy of the Delhi High Court Order dated 9.9.98 in the case of Hindustan Motors v. Union of India is enclosed. 2. As directed by the Delhi High Court, the Board has reconsidered the Circular No. 335/71/97-CX. dated 18.11.97 in the light of the CEGAT judgement dated 13.2.98 in the case of Mahindra Mahindra Ltd. v. CCE, Bombay [1998(103) ELT 606 (T)]. 3. As far as inclusion of after sale services in the assessable value in concerned the CEGAT order dated 13.2.98 is mainly based on Supreme Court decision in the case of M/s Phillips India Ltd. v. CCE, Pune. However, the CEGAT has not taken into account the Board's Circular dated 19.11.97, the reasoning given therei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , was includable in assessable value of goods. This circular refers to decided cases of Bombay Tyre International, Phillips India Ltd. and M.R.F. cases. The CEGAT has delivered a judgement in M/s Mahindra Mahindra Ltd. (Annexure-H) on 13.2.1998 wherein the CEGAT has taken into consideration the entire case law available on the point and also referred to the three decisions set out in the impugned circular. The CEGAT has opined that part of dealers' margin referable to cost of free after-sales-services cannot be included in the assessable value. The submission of the petitioner is that the Circular which runs in conflict with the view of the law taken by the Tribunal has ceased to be goods in the eyes of the law. The As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration and issuance of fresh circular, if any, the impugned circular dated 19.11.97 shall not bind the adjudicating authorities while passing the orders of adjudication. The petition in disposed of in the above said terms. No. order as to costs. September 09, 1998. Sd/- R.C. Lahoti Judge Sd/- C.K. Mahajan Judge True Copy Sd/- Examiner Seal of the High Court of Delhi. (Pl. refer Cir. No. 681/72/2002-CX, Dt. 12/12/2002 - Inclusion of PDI and cost of after sales services in the assessable value of the vehicle) - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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