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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 ..... rom the dealers over and above what is mentioned in the sales invoice - Decided in favor of the assessee. - Excise Appeal Nos. 1843 of 2005 and 1844 of 2005, 1871, 2475 of 2006 and Excise Appeal No. 1183 of 2007 - Final Order No. 61072-61076/2016 - Dated:- 9-8-2016 - Shri Ashok Jindal, Member (Judicial) and Shri B. Ravichandran, Member (Technical) Shri B. L. Narsimhan and Ms. Krati Somani, Advocates for the appellants. Shri Atul Honda, Authorized Representative (DR) for the Respondent. ORDER There are 5 appeals - 4 by the appellant/assessee and one by the Revenue dealing with similar issues and hence are taken up together for disposal. The appellant/assessee are engaged in the manufacture of vehicles. The said vehicles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department's appeal against impugned order dated 28/2/2006 passed by Commissioner of Central Excise, Delhi - IV, he submitted that the findings of the learned Commissioner that PDI charges and after sales free service charges are not includable in the assessable value is not correct. Further, the impugned order was wrong in arriving at the quantum of penalty under Section 11AC. 4. We have heard both the sides and examined the appeal records. We find the main issue in all these appeals are inclusion of certain expenses incurred by the vehicle dealers in the assessable value of vehicles for Central Excise purpose. The admitted facts are that the vehicle manufacturers, who are appellant/assessee in 4 appeals before us, are selling the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been subject matter of many decisions by the Tribunal, Hon'ble High Courts and the Hon'ble Supreme Court. The Hon'ble Bombay High Court in the case of Tata Motors Ltd. vs. UOI (supra), dealing with PDI and after sales service, held against the Revenue's contention on the ground that the appellant/assessee do not charge the dealer any amount equivalent to the cost incurred towards PDI and free after sales services. The Hon'ble High Court held as per Section 4 (3) (d) of Central Excise Act, 1944 such expenses can be included in the transaction value only when they are charged by the assessee to the buyer. The Hon'ble High Court held that the clarification issued by the Board vide Circular dated 01/7/02 is illegal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Textile Mills Ltd. reported in 2004 (167) E.L.T. 379 (S.C.) , advertisement expenditure incurred by a manufacturer's customer can be added to sale price for determining assessable value, if there is legal right enforceable by the appellant/assessee. We find that the Tribunal in Hero Honda Motors Ltd. vs. CCE, Delhi - III reported in 2015 (324) 404 (Tri. - Del.) examined this issue and held that the condition in the agreement that dealers are to vigorously promote, develop and maintain sales of the product to the satisfaction and in the manner required by the manufacturer cannot be treated as a condition which gives an enforceable right to the appellant/assessee to insist on certain quantum of expenses on advertisement by the deal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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