2016 (3) TMI 158

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..... llows: - (6) As far as advertisement expenses, RTPL do not have any legal right against the dealer/distributor to enforce and necessarily incur such advertisement expenditure and it is purely at the option of the said dealer/distributor to do the same, which could be done at his own free will, for the purpose of increasing its business and its sale of own business which is done in an independent capacity and dealer/distributor cannot bind the manufacturer on any account as sale is on principal to principal basis.  (7) ....  (8) In order to maintain uniformity in advertisements, etc, if the dealer/distributor desires to have such advertisements carried out to promote his own business, if need be, can contact RTPL who based o .....

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..... ment to assert that the advertising and publicity material taken by the dealers is purely on their own option. The appellants are in fact giving the said material to the dealers at 50% of the cost. It was argued that sharing of cost is only subject to the requirement of the advertising material by the dealers and it happens only in respect of few of the dealers. Learned Counsel relied on the decision of Hon'ble Supreme Court in the case of Philips India Ltd. - 1997 (91) ELT 540 (SC). He also relied on the decision of the Tribunal in case of Ford India Pvt. Ltd. - 2007 (216) ELT 530 (Tri-Chennai) and Maruti Suzuki India Ltd. - 2008 (232) ELT 566 (Tri-Del). It was asserted that in all these decisions, it has been held that unless cost of .....

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..... tisements benefit both the dealers and to some extent the manufacturer. The joint advertisements are, therefore, can be considered to benefit both the dealers and the manufacturer. Such joint advertisement arises out of legitimate business consideration; this arises out of the mutual interest in maximizing the sale of products. Sharing of expenses on the joint advertisement, campaign is normal. The issue to be considered is whether the dealer's share of expenses can be considered as consideration/additional consideration for sale and added to the assessable value. When the contract envisages such incurring of expenses by the dealer and failure to incur such expenses give a right to the manufacturer to get the advertisement done on their own .....

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