TaxTMI 
TaxTMI 
2009 (11) TMI 442
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....s. Konica] towards advertisement expenses incurred by the respondents, to the assessable value of film rolls manufactured and sold by the respondents. The adjudicating Commissioner has passed a detailed speaking order in this regard. She has given the following reasons for not including such amounts in the assessable value :- "The SCN cites Rule 5 of the Valuation Rules 75 and Rule 6 of the Valuation Rules, 2000 to uphold the liability for addition of the advertisement expenses, incurred by CGL, in the assessable value/transaction value of the finished goods sold by them. It is seen that the products manufactured by CGL are directly sold by them to various dealers. It is contended by the department that CGL are not including the advertisem....
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....clusion or otherwise would merit discussion only in a context where a plea is made for deduction of such expenses from the factory price for arriving at the assessable value. In the pre sent case there is no such abatement claimed." 2. Ms. Indira Sisupal, JDR appearing for the Department states that in addition to the price which the respondents are getting from their customers, they are getting compensated by a further amount from M/s. Konica towards the advertising expenses incurred by the respondents for the impugned goods. She states that the cost of advertising which is necessary to market the product is required to form a part of the assessable value as has been held by the Hon'ble Bombay High Court in the case of Coca Cola India Pvt....
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....would be the date of delivery, are liable to be included. Consequently, where the sale is effected at the factory gate, expenses incurred by the assessee upto the date of delivery on account of storage charges, out ward handling charges, interest on inventories (stocks carried by the manufacturer after clearance), charges for other services after delivery to the buyer, namely after sales service and marketing and selling organization expenses including advertisement expenses cannot be deducted. It will be noted that advertisement expenses, marketing and selling organization expenses and after sales service promote the marketability of the article and enter into its value in the trade. Where the sale in the course of wholesale trade is effec....
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.... 2005 (186) E.L.T. 257 (S.C.). He states that in para 13 of the decision in Bisleri International (supra) it has been held that the price support incentive given by the supplier of concentrates (raw material) to the assessee cannot be included in the assessable value. 4. After hearing both sides and perusal of the case records including the cited case law, we find that in this case the respondents have purchased film from M/s. Konica and after slitting and packing they have sold the impugned goods in the market. They have claimed assessment on the basis of price at which they have sold the impugned goods to the customers. No doubt they have received extra amounts from the supplier of the raw material namely M/s. Konica towards reimbursemen....