Assessable value does not include distributor's post-transfer advertisement expenses where title in goods has already passed.

Advertisement expenditure incurred by a sole distributor after title in the cars had passed was not includible in the assessable value. The Tribunal applied its earlier view that post-transfer marketing expenses borne by the buyer cannot be added to the manufacturer's valuation merely because they may support sales. It treated the contrary line of authorities as fact-specific and found that the appeal grounds did not disturb the Commissioner (Appeals)'s findings. The manufacturer therefore succeeded on the valuation issue.

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Issues: Whether advertisement expenses incurred by the sole distributor after transfer of property in the goods were includible in the assessable value of the manufactured cars.

Analysis: The assessee sold the cars to a sole distributor, and the distributor incurred the advertisement expenditure after the property in the goods had already passed. The Tribunal followed its earlier view that such expenditure, when incurred by the buyer after transfer of title, cannot be added to the assessable value merely because it may assist marketing. The reasoning in the contrary line of cases was treated as confined to its facts, and the appeal grounds were found not to dislodge the Commissioner (Appeals)'s findings.

Conclusion: The advertisement expenses incurred by the sole distributor were not includible in the assessable value, and the assessee succeeded.

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