Assessable value of motor vehicles excludes separately supplied accessories not cleared with the vehicle from the factory.

The assessable value of three-wheelers did not include the value of jack assemblies, rear visual barriers and carpets supplied separately through the spare parts division, because the motor vehicle rules required such items for road use but did not require their supply at the time of factory clearance. As the accessories were not removed with the vehicles and were not integral components of the three-wheelers, prior decisions on tool kits and jack assemblies supported exclusion from valuation. The demand and penalty were therefore not sustainable.

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Issues: Whether the value of jack assembly, rear visual barrier and carpets supplied separately through the spare parts division was includible in the assessable value of the three-wheelers cleared from the factory.

Analysis: The applicable motor vehicle rules required the vehicle to be equipped with certain items while being used on the road, but they did not mandate that the manufacturer must supply those items along with the vehicle at the time of clearance from the factory. The Tribunal noted that the accessories in question were not supplied with the three-wheelers at the time of removal and that prior decisions had consistently held that the value of tool kits and jack assemblies is not includible in the assessable value of motor vehicles when they are not integral components of the vehicle itself.

Conclusion: The value of the optional accessories was not includible in the assessable value of the three-wheelers, and the demand and penalty could not be sustained.

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