Central Excise - Inclusion of cost of after sales services during the initial running in period of the vehicle by the dealers to their own buyers in the assessable value of the vehicle - Delhi High Court decision dated 9.9.98 in the case of M/s Hindustan Motors Ltd. v. Union of India

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....ourt decision dated 9.9.98 in the case of M/s Hindustan Motors Ltd. v. Union of India - regarding. A copy of the Delhi High Court Order dated 9.9.98 in the case of Hindustan Motors v. Union of India is enclosed. 2. As directed by the Delhi High Court, the Board has reconsidered the Circular No. 335/71/97-CX. dated 18.11.97 in the light of the CEGAT judgement dated 13.2.98 in the case of Mahindra & Mahindra Ltd. v. CCE, Bombay [1998(103) ELT 606 (T)]. 3. As far as inclusion of after sale services in the assessable value in concerned the CEGAT order dated 13.2.98 is mainly based on Supreme Court decision in the case of M/s Phillips India Ltd. v. CCE, Pune. However, the CEGAT has not taken into account the Board's Circular d....

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....bsp;      The petitioner is aggrieved by Circular No. 355/71/97-CX issued by Central Board of Excise and Customs whereby the adjudicating authorities have been directed to see that the value of the provision for rendering PDI and three after-sales services by dealers being on behalf of manufacturer, was includable in assessable value of goods. This circular refers to decided cases of Bombay Tyre International, Phillips India Ltd. and M.R.F. cases.         The CEGAT has delivered a judgement in M/s Mahindra & Mahindra Ltd. (Annexure-H) on 13.2.1998 wherein the CEGAT has taken into consideration the entire case law available on the point and also referred to the three decisions se....