CESTAT rules PDI charges not part of assessable value for vehicles, citing Maruti Udyog case.

The Appellate Tribunal CESTAT, Mumbai, held that Pre Delivery Inspection (PDI) charges collected by dealers of the appellant from buyers of motor vehicles should not be included in the assessable value of vehicles cleared from the factory to dealers. The Tribunal relied on the decision in Maruti Udyog Ltd. v. CCE, Delhi, post the amendment to Section 4 on 1-7-2000. The department's appeal against the Tribunal's decision was dismissed as time-barred, resulting in the allowance of the appellant's appeal.

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Issues involved: Interpretation of Pre Delivery Inspection (PDI) charges in assessable value of motor vehicles u/s Section 4 post amendment.

In this case, the Appellate Tribunal CESTAT, Mumbai, examined whether PDI charges collected by dealers of the appellant from buyers of motor vehicles should be included in the assessable value of vehicles cleared from the factory to dealers during the period of dispute (January 2007 to September 2007). The lower authorities ruled against the assessee, leading to a demand for differential duty. The appellant cited the case of Maruti Udyog Ltd. v. CCE, Delhi, arguing that the Tribunal's decision in that case should apply post the amendment to Section 4 on 1-7-2000. Upon reviewing the Tribunal's judgment, it was found that PDI charges received by dealers from buyers were not to be included in the assessable value of cars cleared by the manufacturer. Additionally, it was noted that the department's appeal against the Tribunal's decision was dismissed as time-barred. Consequently, the issue in this case was deemed to be covered against the Revenue by the Tribunal's decision, leading to the allowance of the appeal.

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