9911796707
TMI Blog2025 (1) TMI 604X X X X Extracts X X X X X X X X Extracts X X X X ..... eals pertain to Show Cause Notices issued for the subsequent to the period for which the issue was decided by this Bench in [ 2024 (7) TMI 545 - CESTAT CHANDIGARH ] where it was held that ' it is apparent that the pool charges relate to the transaction of sale of additional vehicles, that the appellant has entered into with the dealers. We find that, as rightly held by the Commissioner, as per Section 4 of Central Excise Act, 1944, the transaction value' means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place an order for the required number of vehicles twenty three in advance; in case the dealer fails to make payment the order stands cancel and the appellant charges 3% of the dealer s margin as cancellation fee; such cancelled vehicles under POS form a Pool ; any dealer desirous of lifting any vehicle from the pool requires to pay 5% of the dealer s margin as pool lifting charges; there are some instances where the dealers could not lift the vehicles from the pool, due to lack of funds etc, are required to pay cancellation charges in addition to pool lifting charges; in such cases the appellants retained the pool lifting charges collected from the dealer; the appellants accounted these charges recovered under the Head Other Income . On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Notices issued for the subsequent to the period for which the issue was decided by this Bench vide Final Order cited above. This Bench held that: 11. We find that the appellants have introduced planned order in system as one window through which the entire supply chain of the appellants was to operate; the system was designed to integrate the three major supply chain links, dealers order for vehicles, production and distribution. In the system in place, a dealer has to make an indent for the number of vehicles he plans to lift in a period before hand; in case some dealers failed to lift the planned number of vehicles the production schedules of the company get disturbed and accordingly the appellant charges some penal amounts from the dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the appellants over and above the transaction value reflected in the sale invoices issued at the time of sale of the vehicles by the appellants to their dealers. Therefore, the same is to be treated as a consideration received by the appellants in course of sale of vehicles to the dealers. We find that Ld. Commissioner has rightly held that this is an additional consideration flowing back to the appellants. 12. Learned Counsel for the appellants submits that pool lifting charges do not form part of the assessable value and is an independent transaction. We are not inclined to accept such an argument as the charges are levied only with reference to the vehicles that are lifted by some dealers from the pool . In view of our discussion a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any value to the marketability of the vehicles sold, is not acceptable. We find that Tribunal in the case of Victory Electricals Ltd (Supra) held that on the aforesaid analysis, we answer the reference by holding that whatever the assessee, as per the terms of the contract and on account of delay in delivery of manufactured goods is liable to pay a lesser amount than the generically agreed price as a result of a clause (in the agreement), stipulating variation in the price, on account of liability to liquidated damages , irrespective of whether the clause is titled penalty or liquidated damages , the resultant price would be the transaction Value , and such value shall be liable to levy of excise duty, at the applicable rate. 6. In view of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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