TaxTMI 
TaxTMI 
2007 (3) TMI 132
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....(Appeals) has noted that the amount received by the Respondents has no connection with the final product manufactured by them. Both the persons were working on a principle to principle basis and at arms length and the relationship is purely commercial relationship and held that the amount reimbursed by M/s. Britco to the assessee cannot be added in the assessable value of the final product. The finding recorded by the Commissioner (Appeals) in Paragraphs 5 & 6 is reproduced herein below: "5. I have gone through the case records and the submissions made by the appellants at the time of personal hearing. The issue in the instant appeal is whether the amounts reimbursed by M/s. Britco to M/s. Model Bottling Company are required to be included....
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.....L.T. 718 (Tri.). The Hon'ble Tribunal has set aside the duty demanded from the appellants as the duty demanded by the department was contrary to the legal provisions. The Tribunal has clearly ruled that third party expenditure (amount given by supplier by means of credit notes) incurred towards marketing, advertising and sales promotions of soft drinks was not addable to the assessable value of the soft drinks since it was not a consideration flowing directly or indirectly from the buyer of soft drinks to the assessee. Therefore no addition was required to be made to the assessable value of the goods. It is very clear from the words used in Rule 5 that any additional consideration flowing directly or indirectly from the buyer to the assess....
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....be kept in mind by excise authorities while determining assessable value of the goods sold by manufacturer to the buyer. Advertisement expenses incurred by M/s. Model Bottling Company have been already included in the assessable value of the goods. The expenses incurred by the third party, not being a dealer or buyer of the goods are not required to be loaded to the assessable value of the goods. In view of this, I hold there is no short payment of excise duty in this case. Apart from the merits of the case, I find that the adjudicating authority has correctly set aside the show cause notice as being time-barred as there was no legitimate basis for invoking the extended limitation of time. This being the settle law that the amounts reimburs....