Exclusion of Service Station Licence Fee from Assessable Value Upheld by Appellate Tribunal The Appellate Tribunal CESTAT, Chennai, found that the amount collected by the appellants from their dealers towards 'Service Station Licence Fee' (SSLF) ...
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Exclusion of Service Station Licence Fee from Assessable Value Upheld by Appellate Tribunal
The Appellate Tribunal CESTAT, Chennai, found that the amount collected by the appellants from their dealers towards 'Service Station Licence Fee' (SSLF) should not be included in the assessable value of petroleum products supplied during a specific period. The Tribunal referenced a similar case involving M/s. Hindustan Petroleum Corporation Ltd. where a similar fee was held to be not includible in the assessable value. Relying on this precedent and the department's acceptance of a similar order, the Tribunal allowed the appeal filed by the assessee, upholding the impugned order.
Issues involved: Determination of whether the amount collected by the appellants from their dealers towards 'Service Station Licence Fee' (SSLF) is to be included in the assessable value of petroleum products supplied to such dealers during a specific period.
The Appellate Tribunal CESTAT, Chennai, in the case represented by Shri M.N. Bharathi, Advocate for the Appellant and Shri B.L. Meena, SDR for the Respondent, with the order pronounced by P.G. Chacko, Member (J), found that the appeal could be disposed of at the current stage after dispensing with pre-deposit.
The central issue in this appeal was whether the SSLF collected by the appellants from their dealers should be included in the assessable value of petroleum products supplied during a specific period. The SSLF was considered as a rental for land, tanks, pumps, and kiosks provided by the appellants to their dealers. Reference was made to a similar fee collected by another entity, M/s. Hindustan Petroleum Corporation Ltd. (HPCL), which was held to be not includible in the assessable value of petroleum products supplied to their dealers. The department had accepted an order-in-appeal in a similar case, and the appeal they filed against it was later withdrawn. Given this precedent, the Tribunal allowed the appeal filed by the assessee.
In conclusion, the Tribunal, after considering the similar order accepted by the department in a related case, upheld the impugned order and allowed the appeal filed by the assessee.
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