2013 (10) TMI 450

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....urse of Audit of their records, it was observed that the dealers had incurred expenditure on advertisement and publicity of the appellant's products and a part of these expenses had been shared by the appellants, but the advertisement and publicity expenses to the extent, borne by the dealers, were not included in the assessable value of the goods cleared by the appellants to the dealers. It was also found that in term of the appellant's agreements with their dealers, the dealers were required to make efforts for promoting the sales of the products of the appellants. On enquiry by the Department, the appellants accepted that the dealers had incurred expenditure on advertisement and publicity, a part of which was being re- imbursed by them t....

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....omotion activity by them, had incurred advertisement expenses, a part of which had been reimbursed by appellants, that the point of dispute is as to whether the advertisement and publicity expenses incurred by the dealers which, were not reimbursed to them by the appellant, are to be add to assessable value of the goods, that this issue stands decided in the appellant's favour by judgments of Tribunal in cases of Roots Industries Ltd. Vs. Commissioner of Central Excise, Coimbatore, reported in 2012 (284) ELT 687 (Tri. Chennai) ; TVS Motors Company Ltd. Vs. Commissioner of Central Excise, Chennai, reported in 2008 (229) ELT 559 ( Tri.Chennai ) ; Amco Batteries Ltd. Vs. Comm. of Central Excise, Bangalore, reported in 2007 (207) ELT 612 (Tri. ....

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....stainable. 4. Ms. Shweta Bector , learned Departmental Representative, defended the impugned orders by reiterating the findings of Commissioner and emphasized that the appellants agreements with their dealers had clauses which required the dealers to make all possible efforts to promote the sales of the appellants products and, hence, it is clear that appellants had enforceable legal right to require the incurring of advertisement expenses by the dealers. 5. We have considered the submissions from both the sides and perused the records. The un-disputed facts are that:-    (a) the appellants agreements with their dealers only have a clause which require the dealers to make efforts for promoting the sales of the appellant's....