2009 (10) TMI 353

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....lt were marketing through M/s. Springs & Spare Marketing (P) Ltd. The Department issued a Show Cause Notice alleging that the said Springs and Spare Marketing (P) Ltd. is a dummy concern; that M/s. Springs and Spare Marketing (P) Ltd. is "related persons" to the appellant; that the said M/s. Springs and Spare Marketing (P) Ltd. have incurred sales promotion and advertisement expenses and ex-gratia service charges as seen from the balance sheet and the said amounts should be included in the assessable value of the products sold by the appellant company. The Commissioner did not uphold the allegations that the marketing company is a dummy concern and that they are related to the appellant company. However, he held that the expenses towards sa....

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....and 6.11 of the order in original. 6. We have carefully considered the submissions from both sides and perused the records including the terms of agreement which has been reproduced in the show cause notice. From the agreement, we have not been shown any clause by which the marketing company was required to meet the advertisement expenses or incurred ex-gratia payments. Unless the advertisement expenses are incurred by the dealer in terms of contractual obligation and there is depression of the sale price, the question of including such expenses in the assessable value of the manufacturer does not arise as held by the Hon'ble Supreme Court in the case of Philips India Ltd. (cited supra). In this regard the relevant portion of the order o....

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....ny repairs to any Philips receivers during the prescribed guaranteed service period. (19) The Dealer undertakes to maintain an efficient service station duly equipped in every respect to the satisfaction of the Company at all times and will assume full responsibility for the servicing or repairs in respect of the sets and the Company's products. The Dealer shall comply in this respect with whatever instructions may be given from time to time by the Company. (24) The Company reserves the right to exercise control and supervision at any time over all repairs of Philips receivers and in case repairs are considered by the Company to be of an unsatisfactory nature, the Company will be free to correct such repairs at the cost and expense of....