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TMI Blog2017 (6) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... , where it was held that there is nothing in their agreements from which it can be concluded that appellants had enforceable legal right against the dealers to insist on incurring of certain amount of expenses on advertisement and publicity of the appellants products, and hence amount not included - appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants because the dealership agreement does not give an enforceable right to the appellant against the dealers. It was also argued that irrespective of the dealers incurring these expenses or not, the price of the vehicles sold by the appellant to the dealers remains same. She contended that the issue stand decided in the appellants favour by the judgment of this Tribunal in the case of Honda Seils Power Products Ltd. Vs. CCE - 2015 (317) ELT 510 (Tri.-Del.) and Maruti Suzuki India Ltd. Vs. CCE 2008 (232) ELT 566 (Tri. Del.). Subsequent to the hearing, they submitted the copies of the dealership agreement between Honda Motor Company and a dealer covering the period in the above cited judgment Honda Seils Power Products Ltd. Vs. CCE (s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have a clause which require the dealers to make efforts for promoting the sales of the appellant's products; and (b) during the period of dispute, the dealers had incurred expense on advertisement and publicity, a part of which had been reimbursed by the appellants to the dealers. The point of dispute is as to whether the expenses on advertisement and publicity expenses incurred by the dealers, which were borne by them, are to be added to the assessable value of the goods or not. On this point, it is seen that the Apex Court in case of C.C.E., Surat v. Surat Textile Mills Ltd., reported in 2004 (167) E.L.T. 379 (S.C.) has held in clear terms that only when a manufacturer has enforceable legal right against his customers/dealers to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . PROMOTION : The Dealer shall at all times during the currency of this Agreement use its best endeavours to promote sales of the Products within the Territory and to secure and maintain the confidence of Customers in the products and to enhance the reputation of the company and the products. 29. ADVERTISING : The Dealer shall advertise and/or promote products. Parts and Service facilities in detailed manner as to secure adequate and effective publicity to the satisfaction of the company at its own expense. 29.1 The dealer shall not engage in any form of sales promotion or publicity or release any advertisement without the prior, written approval of the company. 29.2 UNDESIRABLE ADVERTISING : The dealer will not advertise or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the part of the dealer may lead to the cancellation of dealership and therefore there is an enforceable legal right is acceptable. Such cancellation cannot lead to situation enforcing purchase of promotional materials for the past. The facts of the case mentioned in M/s. Kinetic Engineering Ltd. v. CCE, Aurangabad reported in 1999 (107) E.L.T. 150 (T) and in the case of M/s. Escorts Limited reported in 1998 (98) E.L.T. 206 (T) are applicable to the present facts of the case and impugned orders against the appellants/assessee are not sustainable. 11.3 In the case of M/s. Swaraj Mazda Limited (Excise Appeal No. 875 of 2008), the appellant has claimed that there is no connection of sale of promotion material with the sale of finished goo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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