2007 (6) TMI 77

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....duty on sales promotion expenditure incurred by the dealers of multi utility passenger vehicles (MUPVs) manufactured by M/s. Toyota Kirloskar Motors Ltd. (the appellants) and the cost of transportation and transit insurance incurred by the appellants for transporting their product from their factory to the dealers' premises during the period 1-7-2000 to 31-12-2002. The total adjudication levies involved in the orders impugned is Rs. 3,80,56,927/-. As all the appeals deal with the same issues, one of the appeals No. E/517/05 is taken up for detailed examination. 2. In the order impugned in appeal No. E/517/2005, the Commissioner has affirmed the demand of duty to the tune of Rs. 83,68,355/- and penalty of Rs. 50,000/- on the appellants. T....

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....introduction of the concept of the transaction value with effect from 1-7-2000 for assessment. Therefore, the ratio of Indian Oxygen Ltd. (supra), case applied and the value realized by the appellants excluding freight and insurance collected was the value relevant for assessment. Moreover, the appellants had submitted certificates obtained from Chartered Accountants which showed that the appellants had incurred a higher amount towards freight and insurance and had collected from the dealers a flat 2% of the invoice value when the goods were transported by road and 15% of the invoice value when the goods were transported by air. The authorities had denied the admissible deduction only on the ground that Rule 5 of CEVR provided for abatement....

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....ssessee's policy framed with a view to safeguard its reputation. The Ld. Counsel claimed that in view of the various case law he cited, the demand was not sustainable. 5. The Ld. SDR defends the impugned order and justifies the demand and penalty. 6. We have carefully considered the rival contentions. We find that, the assessable value of the manufactured goods is the total consideration the manufacturer receives from the buyer in an arms length transaction, for delivery of the goods at the factory gate. This basic concept of central excise levy has remained unchanged even after the measure of levy has shifted from a deemed normal price to the transaction value. In the Indian Oxygen Ltd. case (supra), the Apex Court observed that exci....