Valuation for excise: discounts on demo vehicles must be included under valuation rules and binding precedents, sustaining Revenue's determination.

Discounts on demo vehicles sold to dealers are includible in the excise assessable value; valuation must adopt the comparable price of normal cars because demo vehicles were not shown to constitute a separate class for valuation. The conclusion applies Section 4 and Rule 6 valuation principles and the Board circular clarifying no distinction at removal, and follows prior Tribunal precedents holding that demo-car discounts are not permissible deductions from transaction value. As a result, the discount is included in value and the appeals are dismissed with Revenue's valuation determinations upheld.

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Issues: (i) Whether the discount offered by the appellant on demo vehicles sold to dealers is includible in the assessable value under Section 4 of the Central Excise Act, 1944 and the valuation rules.

Analysis: The issue concerns valuation for excise purposes where demo vehicles are offered to dealers at a discounted price. The legal framework includes Section 4 of the Central Excise Act, 1944, Rule 6 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 and the Board circular F. No. 6/40/2002-CX.1 dated 01.04.2003 which clarify that at the time of removal there is no distinction between demo and normal vehicles for valuation. Prior decisions of the Tribunal in Ford India Pvt. Ltd. and Hyundai Motor India Ltd., affirmed by later orders, held that discounts for demo cars are not permissible deductions from transaction value where demo cars are not shown to be a separate class for valuation purposes and comparable price of normal cars must be adopted. The appellate bench applied those precedents and found them squarely applicable to the present facts, noting that the Revenue had relied on established authority and the Supreme Court had disposed of related civil appeals, leaving the issue settled.

Conclusion: The discount on demo vehicles is includible in the assessable value; the appeals are dismissed and the valuation determinations in favour of Revenue are upheld.

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