Transaction value dispute over inspection and service charges led to Larger Bench reference and interim stay of recovery.

Pre-delivery inspection and after-sale service charges were examined for inclusion in assessable value under the expanded concept of transaction value. The order noted a prima facie view that such charges could form part of valuation, but also recorded an earlier Tribunal decision favouring the assessee on the same issue. Because of that conflict, the substantive valuation question was referred to a Larger Bench. Pending disposal of the appeal, the Tribunal granted interim protection by waiving pre-deposit and staying recovery of the duty demand.

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Issues: Whether pre-deposit of the duty demand should be waived and recovery stayed pending disposal of the appeal, and whether the dispute on inclusion of pre-delivery inspection and after-sale service charges in assessable value should be referred to a Larger Bench.

Analysis: The order records a prima facie view that the charges towards pre-delivery inspection and servicing could fall within the expanded definition of transaction value, but also notes an earlier Tribunal decision in the assessee's favour on the same question. In view of the conflict between the prima facie view and the earlier decision, the substantive valuation question was referred for decision by a Larger Bench. As the earlier decision existed in favour of the assessee for the relevant period, the Tribunal granted interim protection by waiving pre-deposit and staying recovery.

Conclusion: Pre-deposit was waived and recovery of dues was stayed pending disposal of the appeal, while the valuation issue was referred to a Larger Bench.

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