Inclusion of cost of after sales services during the initial running in period of the vehicles by the dealers to their own buyers in the assessable value of the vahicle

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..... ard of Excise Customs, New Delhi Subject : Inclusion of cost of after sales services during the initial running in period of the vehicles by the dealers to their own buyers in the assessable value of the vahicle The question of inclusion of after-sale service expenses in the assessable value has since long been settled after the Supreme Court judgement in the case of Bombay Tyre Internat .....

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..... rvices become compulsory on the part of the customer to remain eligible for any clam under warranty. The liability under warranty of the cost of parts and labour charges is on the manufacture and he monitors charges incurred on such after-sale services when a buyer of the vehicle from a dealer moves to an area of other dealer, the after-sale services in such cases are also monitored by the manuf .....

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..... acts stated above, it is obvious that pre-delivery inspection and three further services are compulsory on the part of the customer to remain eligible for any claim under warranty and are being provided by the dealer only on behalf ot the manufacturer. In these circumstances, the difference between the sale price and the amount paid to the manufacturer by the dealer i.e. dealer's margin also conta .....

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..... sorily to be eligible for the guarantee cover, as is the case for motor vehicles. The case also does not discuss or overrule the decision in the Bombay Tyre International, wherein Hon'ble supreme Court has decided that after-sale services being part of the selling expenses will be includible in the assessable value. This decision was reiterated in the MRF case also. Thus, Board is of the view th .....

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