Inclusion of optional warranty charges in assessable value affirmed as taxable under assessability principles, affecting manufacturer wholesaler transactions. Optional warranty fees collected by a manufacturer from a wholesale purchaser are includible in the assessable value under the Central Excise Act, following the Supreme Court's principles on after sales service charges. The Law Ministry confirmed that such charges fall within assessable value computation. Prior departmental instructions permitting exclusion have been superseded, but assessments already finalised under the earlier instruction will not be reopened.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Inclusion of optional warranty charges in assessable value affirmed as taxable under assessability principles, affecting manufacturer wholesaler transactions.
Optional warranty fees collected by a manufacturer from a wholesale purchaser are includible in the assessable value under the Central Excise Act, following the Supreme Court's principles on after sales service charges. The Law Ministry confirmed that such charges fall within assessable value computation. Prior departmental instructions permitting exclusion have been superseded, but assessments already finalised under the earlier instruction will not be reopened.
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