TaxTMI 
TaxTMI 
2014 (11) TMI 31
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....dditional consideration over and above the price of their finished goods from the dealers, which additional consideration is required to be added in the assessable value of their final product. The said additional consideration was from the dealers, which was being received by them on account of dealers staff training. Further the appellants have floated a passport programme under which buyers/owners of Hero Honda Motor Cycle were entitled to become the Member of scheme on payment of sum of Rs. 95/- per customer, which was being recovered from the dealers. In terms of the said scheme, the passport holders are entitled to free accidental insurance cover for one year worth Rs. 1 lakhs, invitation to events, musical nights, carnivals, monthly news letter of the company and information on motor cycle maintenance, accumulation of points on purchase of spares and service of motor cycle. Further the appellant was also recovering amounts from their dealers by issuing a debit note in respect of the expenses incurred with the activity of sending birthday cards and marriage anniversary. 3. By entertaining a view that all the receipts of the appellant from their dealers were in the nature of ....
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....isions of Section 4 of the Central Excise Act readwith the definition of transaction value as appearing in the said Section. For better appreciation the relevant provisions of the said Section are reproduced below :- Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall - (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value ; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. {Explanation :- For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value o....
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....ning at National Training Centre a separate course fee per course will be charged in addition to said charges. As per the appellant, these programems are conducted to impart skill and knowledge, developing softer skill and etiquettes, customer relationship, attitudinal training, inventory control and house keeping for spare parts. The said programme is a need base programme and an optional programme. They have established it from the data chart produced before us that out of huge number of dealers and their staff, only 1108 persons were given the dealers staff training, which establishes that it is not binding for the dealer to undertake the said programme. Further the expenses of training such as content development, travel boarding/lodging to outside trainer and company personnel, food, tea and snacks are fully borne by the company. Only training hall charges, cost of hiring training equipment like projectors, PA system etc. is recovered at 50% cost from the dealers and 25% from the service point dealers. As is seen, the dealers staff training programme is a scheme innovated and executed from the head office of the company and not from the factory located at Gurgaon. The same is....
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....stomer does not want to become a Member of the said scheme, he is at liberty to do so. The said small collection of Rs. 95/- per person/buyer of the motor cycle is not a consideration towards the sale of the motor cycle in as much as in lieu of said collection, the assessee is providing various other facilities to the buyer. As such, the said consideration has to be held as receipt of the amounts for letting the buyer enjoy the other benefits to be provided against such collection of the amount. Even otherwise also we find that the expenses incurred by the appellants head office are much more than the collection made under the said head. As such, we agree with the learned Advocate that such collection of money from the persons who opt for the scheme, can, by no stretch of imagination, be held to be a part of the transaction value. (3) Birthday and Marriage Anniversary Cards :- Based upon the information of Members registered under the passport scheme, the appellants were sending birthday and marriage anniversary cards to the said persons, for which purpose they have a central agency. A part of the said expenses were being recovered by the appellants from their dealers by issuing d....