2009 (7) TMI 1035

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....g the expenses incurred by the dealers on behalf of M/s. Fiat India Pvt. Ltd., in course of carrying out pre-delivery inspection and rendering three free services during warranty period at the rate of Rs. 1750/- per vehicle. 25. I confirm the demand of Central excise duty totally amounting to Rs. 58,01,062/- (Rupees Fifty-eight Lakhs One Thousand Sixty-two only) under Section 11A of the Act and order its recovery from the assessee. 26. I impose a penalty of Rs. 58,01,062/- (Rupees Fifty-eight Lakhs One Thousand Sixty-two only) under Section 11AC of the Act and order its recovery from the assessee. 27. I order recovery of interest on the above amount demanded from the assessee at the appropriate rate under Section 11AB of the Act." ....

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....e. Even when the dealers of the manufacturer were incurring PDI and after sale service expenses, the Tribunal had taken a view that such expenses are not includible in the assessable value of the vehicle in the case of M/s. Maruti Udyog Limited v. C.C.E. - 2004 (170) E.L.T. 245. If the expenses incurred by the dealers towards PDI and after sale service are not includible even if these were not reimbursed by the manufacturer, the said expenses do not prima facie seem to be includible in the assessable value, when the manufacturer incurs such expenses by reimbursing the amount equal to the expenses incurred by the dealers towards such expenses. 5. Further, it is well-settled legal position that where the excisable goods are sold at a price....

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.... had effectively incurred such expenses during the period after 1-9-2003. 8. The show cause notice dated 30-4-2004 considered all the facts and proposed to demand duty only for the period prior to 1-9-2003 by including the PDI and after sales service expenses incurred by the dealers in the assessable value of the motor vehicles manufactured and sold by the applicants to such dealers. The applicants' Circular dated 26-8-2003, which is relied upon in the present show cause notice dated 22-9-2008 for the period after 1-9-2003, was also available to the Department during 2003-04, when the investigations were conducted by the Department for the purpose of issue of show cause notice dated 30-4-2004. The fact that the applicants have been payin....