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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....X.I Government of India Ministry of Finance Department of Revenue, New Delhi Subject: 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 - regarding. A copy of t....

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....n the Circular, while delivering the said judgement. 4. The Board has also examined the other reasoning given in the CEGAT judgement dated 13.2.98 and finds that there are no adequate reasons to revise the Board's circular dated 19.11.97. 5. Incidentally, Board has filed an SLP against CEGAT judgement in the case of M/s Mahindra & Mahindra Ltd. dated 13.2.98. Sd/- (S.C. Bhatia) Under Secreta....

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....ion 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 enti....

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....ty with the view taken by the CEGAT and this conflict in bound to create an anomaly for an order of the CEGAT also binds the adjudicating authorities. In view of the law laid down the Supreme Court in the cast of Orient Paper Mills Ltd.v. Union of India 1978(2) ELTJ 345 and thereafter by the High Courts of Gujarat & Madras in Geneset Engineers Pvt. Ltd. v. Union of India (1989) 43 ELT 24 and La....