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TMI Blog2016 (11) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... al. The appellant/assessee are engaged in the manufacture of vehicles. The said vehicles are sold to various customers through a dealer network as per the dealer sales agreement. The dispute is relating to inclusion of certain expenses incurred by the dealers in the assessable value for the purpose of Central Excise duty payable by the appellant/assessee. These expenses relate to Pre-Delivery Inspection (PDI), free services provided to customers after sales, training providing to customers, labour involved on replacement of parts, advertisement of vehicles, storage at the dealer's end, repair of vehicles and outward handling of vehicles. 2. The learned Counsel appearing for appellant/assessee submitted that the appellant/assessee have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icle manufacturers, who are appellant/assessee in 4 appeals before us, are selling their vehicle on a declared price and are not getting any additional monetary consideration from the dealers over and above what is mentioned in the sales invoice. However, the case of the Revenue is that certain expenses which are incurred by the dealers while selling and servicing these vehicles are to be added in the assessable value on the ground that these are expenses incurred by the dealers on behalf of the vehicle manufacturers and they are attributable to the increased marketability of the product. In the impugned orders it has been noted that though such activities are clearly post-manufacturing activities but are performed in connection with the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the clarification issued by the Board vide Circular dated 01/7/02 is illegal and void as it is contrary to the provisions of Section 4 (1) (a) readwith Section 4 (3) (d) of the Act. The above ratio has been upheld by the Hon'ble Supreme Court in CCE, Mysore vs. TVS Motors Co. Ltd. (supra). The Hon'ble Supreme Court held the expression "in connection with sale of the goods" would only mean that but for payment of the additional amount, the sale of the goods would not take place. It was noted that there are no major change incorporated w.e.f. 01/7/2000 with the emphasis on the "different transaction value" from the "assessable value". The Hon'ble Supreme court concluded that the PDI charges, free after sales charges would n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... insist on certain quantum of expenses on advertisement by the dealers. The Tribunal held that the advertisement expenses on dealers are not to be included in the assessable value. We also note that in a case involving one of the appellant/assessee the Tribunal held that when the publicity and advertisement were borne by the dealer at his choice to promote sale that does not mean the assessable value shall be hike to that extent in Yamaha Motors India Pvt. Ltd. vs. CCE, Noida reported in 2014 (301) E.L.T. 524 (Tri. - Del.). 8. On examining the various decided cases and the facts involved in the present appeals, we find no merit in the impugned orders relating to inclusion of expenses incurred by the dealers in the assessable value and the v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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