2000 (8) TMI 436

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.... depots, deductions on account of depot handling charges have also been claimed. The assessments were provisional and at the time of finalisation of the assessment, the Assistant Commissioner held the following charges to be includible in the assessable value of the motor cycles :- 1. Equalised cash discount. 2. Interest on receivables. 3. Tool kits. 4. Secondary packing. 5. Depot handling charges. 6. Extended warranty charges. 7. Contributions to EDDAL. 8. Sale of publicity material to dealers. That decision, upon confirmation by Commissioner (Appeals), is in challenge in the present appeal. 2. At the outset, it may be stated that it is well settled that when the ex....

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....al to the sale price at the time of removal of the goods. 4. Learned Departmental Representative has submitted that the above mentioned issues relating to cash discount and interest on receivables remain covered by the decision of the Larger Bench of the Tribunal in Gomti Carbon Dioxide v. CCE, Kanpur, [2000 (119) E.L.T. 565 (Tribunal-LB)]. In that case, this Tribunal held that cash discount and deductions towards credit sales are to be allowed while fixing assessable value. In the appellants' case, since there is no dispute that cash discounts are given or that the sales are on credit basis, we find no reason to disallow these deductions. 5. With regard to extended warranty charges, it has been explained that the normal war....

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....lised. The learned counsel submitted that the appellants received no benefit from the collection made under this head. The amount was entirely passed on to EDDAL and utilised for the benefit of the members of that association. He, therefore, submitted that there is no basis for adding this amount to the assessable value of the motor cycles. On perusal of the orders impugned, we find no finding to the effect that the amounts collected are kept by the appellants or utilised for the appellants' benefit. Therefore, this collection cannot be treated as forming part of the sale price of the motor cycles. Therefore, it cannot be added to the assessable value of the motor cycles either. We, therefore, hold that the addition ordered in the impugned ....