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<h1>Tribunal includes advertisement charges in duty calculation, reduces penalty on lack of agreement</h1> The Tribunal held that advertisement charges collected by the appellant should be included in the assessable value for duty calculation as they were ... Valuation - Advertisement expenses Issues:1. Whether advertisement charges are includible in the assessable value for duty calculation.2. Whether the penalty imposed is justified.Issue 1:The appellant collected extra amounts through debit notes for advertisements, publicity, and sales promotion charges without informing the Department. The dispute revolved around whether these charges should be added to the assessable value for duty calculation. The appellant argued that the charges were borne on a three-tier system and were collected from dealers for uniform advertising, not as additional consideration. The Tribunal analyzed various case laws and letters provided as evidence. The Tribunal concluded that the advertisement charges related to the branded products of the appellant and were not done on behalf of the dealers. The absence of a clear agreement between the appellant and dealers regarding the advertisement expenses led to the decision that the charges were part of the assessable value. The Tribunal upheld the duty demand but reduced the penalty imposed.Issue 2:Regarding the penalty imposed, the appellant contended that the charges were for local advertisements to boost dealer sales and should have been borne by the dealers. However, the Department argued that the charges were collected from dealers through debit notes and were related to the appellant's products. The Tribunal considered the arguments from both sides and found that the appellant did not provide sufficient evidence to prove that the charges were solely for the benefit of dealers. As a result, the Tribunal upheld the penalty but reduced it from Rs. 20,000 to Rs. 5,000 due to the circumstances of the case. Ultimately, the appeal was dismissed, except for the modification in the penalty amount.---
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