2015 (10) TMI 767

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....g marketed during the period 1.7.2000 to 31.3.2004 by one M/s. Indef Marketing Services Ltd. (hereinafter referred to as IMSL), who was a 100% subsidiary company of the appellant and later on, the said subsidiary was merged with the appellant. The appellant/IMSL had appointed a network of authorized marketing associates known as AMAs, spread across the country. The AMAs in turn appoint dealers in their respective territory. Such dealers sell the goods manufactured by the appellant. Sometimes the dealers give advertisement which primarily projects them as the dealer in the appellant's gods. As per the business policy followed by the appellant, 50% of the expenses incurred in such advertisement is reimbursed to the dealer by the appellant....

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....disbursed by the appellant is form the amount recovered by the appellant by selling the goods and, therefore, this amount cannot be considered as an additional consideration and cannot be taxed twice. The learned counsel also submitted that the issue has been decided by the various judgments in the past and the change in the valuation law from 2000 onwards does not make any difference. 3. The learned AR, on the other hand, submits that from 2000 onwards, Section 4 has undergone change and as per the new section, transaction value has to be taken, which can vary from buyer to buyer. In view of the changed situation, the fact that the appellant is selling the goods at the same price to an advertising AMA and to non-advertising AMA, is irre....

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....ods" 4.1 As per the said definition, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization expenses etc. Thus, if any amount is spent by AMA or dealer for advertisement or publicity, the same will form part of the transaction value. However, in the present case, we note that AMAs are not advertising the goods per se but what they are doing is to put an advertisement such as in Yellow Pages and in other places like bill-board so as to indicate that they are dealers of INDEF equipm....