TaxTMI 
TaxTMI 
2007 (1) TMI 26
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....pute is Jan. '84 to May '87. Under the impugned order, the Commissioner has found that the cost, realisations in respect of nine items were required to form part of the assessable value of scooters and on account of the exclusion of these items, non-payment of duty of about Rs.30 lakhs took place. We may read the Commissioner's findings: "In view of the above facts the various demands confirmed on different grounds are summarised below: S.No. Grounds  ....
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....nbsp; Rs.3,847.75 5. Monsoon Packing Rs.3,15,292.55 6. 2-T Oil Supply  ....
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.... Rs.l,42,387.47 Total: Rs.29,94,789.92 ....
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....is well- settled that all costs incurred up to delivery at the factory gate are required to form part of assessable value; but not costs beyond the factory gate. Since the forwarding charges in the present case are in relation to freight forwarding, it cannot be part of the assessable value. Thus, there is merit in the appellant's contention on this issue also. 6. In regard to 'F.S.E. Salary' it is being explained that this is contribution made by the company towards the cost of Service Engineers' employed by dealers. The contention is that since service engineers are employees of authorised dealers, cost of those engineers do not form part of the cost of manufacture. It is being pointed out that this is a case where the appellant incurred....
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....e submission is that the measure of assessable value under the Act is the ex-factory sale price and therefore, cost of supplies made subsequent to sale at the stage of servicing, maintenance etc. can not form part of assessable value. It is to be noted that during the relevant period, the normal price at the factory gate was the measure for the purpose of assessment under Section 4(1) of the Central Excise Act. Since the supply of this oil takes place much after the clearance of the goods from the factory, at the time of servicing, the assessee is right in contending that this cost cannot be included in the assessable value. 9. In regard to 'Shared Advertising', dealers are required to carry out their own advertisement in their areas. 50% ....
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....s (stationery items) like money order forms. The sale of the booking form was a separate sale of a different item from scooter as not all purchasers of forms need or would book the scooter. 11. A demand of over Rs.9 lakhs is on a finding that 'retention charges' collected by the appellant should be added to the sale price for the purpose of assessment. The factual position relating to collection of this charge is that scooters are sold at the time of their removal from the factory to buyers. The scooters are sent to delivery centers wherefrom buyers have to take delivery, after paying the outstanding amount of price and other charges. The period fixed for taking delivery ranged from 20 to 25 days. In the event of delay in taking delivery, ....