Assessable value of motor vehicles excludes transport and service charges where sale is treated as completed at the factory gate.

Transportation charges and transit-related service charges recovered from buyers of motor vehicles were held outside the assessable value because the vehicles were identified in invoices, sold under dealer agreements, and handed to the transporter with the dealer shown as consignee. The contractual clause relied on by the Revenue did not override the statutory meaning of delivery under the Sale of Goods Act, 1930. On these facts, the sale was treated as taking place at the factory gate, so the amounts recovered for transport and service were not includible in assessable value.

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Issues: Whether transportation charges and service charges collected from buyers of motor vehicles were includible in the assessable value.

Analysis: The vehicles were identified in the invoices, sold on dealer agreements, and in the relevant transactions the goods were handed over to the transporter with the dealer shown as consignee. The contractual clause relied upon by the Revenue did not displace the statutory meaning of delivery under the Sale of Goods Act, 1930. On the facts, the sale was treated as taking place at the factory gate, and the amounts recovered towards transport and transit-related service charges were not part of the assessable value.

Conclusion: The transportation charges and service charges were not includible in the assessable value, and the assessee succeeded.

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