Assessable value excludes dealer-reimbursed service charges absent any flow-back or additional consideration to the manufacturer.

Pre-delivery inspection charges and after-sales service charges reimbursed to dealers were not includible in the assessable value of motor vehicles because there was no evidence of any direct or indirect flow-back to the assessee. Includibility depends on additional consideration being received by the assessee in relation to the sale of goods, and the record showed these amounts were borne as expenses in the books rather than recovered from buyers. A departmental circular could not override this factual position. The Revenue's challenge therefore failed and the charges remained outside assessable value.

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Issues: Whether pre-delivery inspection charges and after-sales service charges reimbursed to dealers were includible in the assessable value of the motor vehicles in the absence of evidence of any flow-back from the dealer to the assessee.

Analysis: Includibility in assessable value arises only when an amount is received by the assessee, directly or indirectly, from the buyer in relation to the sale of goods. The material on record showed no such flow-back. Instead, the assessee reimbursed the dealers for these charges, and the amounts were reflected as expenses in the books of account. In the absence of any additional consideration flowing back to the assessee, the charges could not be added again to the assessable value. The departmental circular relied upon could not alter this factual position.

Conclusion: The charges were not includible in the assessable value, and the Revenue's appeal was rejected.

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