9911796707
TMI Blog2007 (5) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... ers are governed by 'Dealer Sales and Service Agreement' (the agreement).,The issue involved in this appeal is whether the expenditure incurred by dealers in promoting sales of assessee's products by advertising them in the print media, static display etc. is includible in the assessable value of cars. The sales promotion campaigns were undertaken by one or several dealers together or jointly by the dealers and financiers such as Ford Credit, HDFC Bank, ING Vysya etc. In most such cases, FIPL reimbursed the expenditure incurred by the dealers/financiers to varying extents such as 75%, 50%, 25% at their discretion. The Commissioner has demanded duty on that portion of the expenditure not reimbursed to the dealers. He has treated the financie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. Counsel for the representative submitted that whatever expenditure was incurred by the assessee on advertising was included in the sale price to their dealers and that the dealers/financiers had advertised the cars for their own benefit. There was no written or oral agreement, requiring the dealers to advertise the cars. The finding of the Commissioner to the contrary was with out any basis. The assessee had never charged the dealers for advertising in addition to the price charged at the time of clearance of the cars and there was no association of dealers in which the dealers were members and contributed any subscription. During the material period FIPL incurred Rs. 326 crores towards advertisement whereas the dealers and the financi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture incurred by the dealers or financiers is not includible in the assessable value of the cars. In a case of similar facts, in CCE v. M/s. Gangadharam Appliances Ltd. reported in 2007-TIOL-372-- CESTAT-MAD, this Bench had held that for including advertisement costs in the assessable value, it should be shown that such cost was incurred by the customers compulsorily. In Amco Batteries Ltd. v. CCE, 2007 (207) E.L.T. 612 (Tri.-Bang.). the Tribunal held that in the absence of a written agreement with an enforcement clause to enforce the legal right to insist on advertisement, advertisement expenses incurred by the dealers on their own account could not be added to the assessable value. The Apex Court in CCE, Surat v. Surat Textile Mills Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X
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