Advertisement expenses not added to assessable value absent proof of extra recovery or non-sole consideration in sale price.

Advertisement expenses were held not includible in assessable value where sales were on a principal-to-principal basis and the department could not show that the price charged was not the sole consideration or that any additional amount was actually recovered from buyers. The transaction value was therefore not liable to enhancement on the basis of alleged advertisement cost sharing, and the Board circular did not supply a contrary legal basis. The conclusion was that advertisement cost could not be added to duty valuation on the facts recorded, with the issue decided in favour of the assessee and against the Revenue.

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Issues: Whether 50% of the advertisement cost paid by the dealer to the assessee was includible in the assessable value for duty purposes.

Analysis: The assessability of the advertisement amount depended on whether the price charged for the goods was not the sole consideration for sale and whether any additional amount had been collected from buyers and suppressed for evasion of duty. The record showed that the sales were on a principal-to-principal basis, and no clear case was made out that the assessee had collected any extra amount from buyers towards advertisement or that the transaction value was liable to be enhanced on that account. The Board circular did not establish any contrary legal basis, and the earlier reasoning adopted by the appellate authority remained sound.

Conclusion: The advertisement cost was not includible in the assessable value; the issue was decided in favour of the assessee and against the Revenue.

Ratio Decidendi: Advertisement expenses are not includible in assessable value unless the department establishes that the sale price is not the sole consideration or that an additional amount was actually recovered from the buyer.

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