TaxTMI 
TaxTMI 
2006 (7) TMI 86
X X X X Extracts X X X X
X X X X Extracts X X X X
....s). They sell their cars, on a principal-to- principal basis, to their dealers against payment of full sale consideration which includes mandatory warranty charges for one year. The applicable duty on the transaction value (including mandatory warranty charges) is levied at the time of removal of cars from the factory to the dealers. There is no direct sale from the factory to the customers, who p....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... In adjudication of the dispute, the jurisdictional Commissioner passed two orders covering the above two periods and these orders are under challenge in appeal Nos. E/1132/2003 and E/49/2005. 3. Ld. Counsel for the assessee submitted that the question whether optional warranty charges were to be included in the assessable value of the vehicles had already been decided, on a similar set of facts,....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tled that the first sale transaction is the relevant price for the purpose of valuation of manufactured goods. In the present case, in the first sale price of the manufacturer, the cost of normal warranty for 2 years remains included and duty is being discharged based on that transaction value. The extended warranty is an agreement between the buyers of the cars and Maruti Udyog Ltd. The dealers f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....r of the goods is not in the picture and makes no payment to the manufacturer or anybody else towards extended warranty. Thus the manufacturer's sale of car, and sale of extended warranty are two different business carried out by the appellant and consideration of one cannot be included in the consideration of other." 5. The nature of the transaction between the appellants and the customers is id....