AI Drafter 
TaxTMI 
TaxTMI 
2016 (8) TMI 119
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....e as follows:- (a) The appellant M/s Maruti Suzuki India Limited is a manufacturer of motor vehicle and parts thereof. They market the goods through their network of dealers, (b) The appellant is carrying out main advertisement at the national level at their own expenses. The amount of expenses so incurred is included in the selling price of the finished goods and excise duty is paid on such price. (c) The appellant has written agreements with their dealers which envisage that the dealers shall at all times during the currency of the agreement make efforts to promote the product and its reputation within the allotted territory. (d) &nb....
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....ed penalties. Aggrieved from the said impugned order the appellant is before us. 2. The Ld. Counsel appearing on behalf of the appellant submits that in their own case for the earlier period on the identical issue this tribunal has held that advertisement cost incurred by the dealers and promotional materials sold to the dealers are not includible in the assessable value of the appellant. The said order has been reported in 2008 (232) ELT 566 (Tri, Delhi), therefore, the issue has already been settled by this tribunal. The impugned order is to be set aside. 4. Heard the Ld. Counsel and we have gone through the order of this tribunal in appellant's own case for earlier period. As the issue involved in the matter has alread....
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....rer to get the advertisement done on their own and recover the expenses from the dealer, such an arrangement cannot be considered as an option. Such expenses by the dealers would be payment basically on behalf of the manufacturer and requires to be added to the assessable value. 10. In the present case, relating to M/s. Maruti Suzuki India Limited, we find it has been claimed that the advertisements are not done by all the dealers; and even in respect of dealers undertaking such advertisements, the extent of expenses does not get linked to or proportionate to number of vehicles sold by them; it was claimed that the dealers have incurred expenses varying from 0.0070% to 0.2333% of total sale value. In view of the above, it appe....
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.... times during the currency of this Agreement use its best endeavours to promote sales of the Products within the Territory and to secure and maintain the confidence of Customers in the products and to enhance the reputation of the company and the products. 29. Advertising The Dealer shall advertise and/or promote products. Parts and Service facilities in detailed manner as to secure adequate and effective publicity to the satisfaction of the company at its own expense. 29.1 The dealer shall not engage in any form of sales promotion or publicity or release any advertisement without the prior, written approval of the company. 29.2 Undesirable Advertising The dealer will not advertise ....
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....he stand of the department that the failure on the part of the dealer may lead to the cancellation of dealership and therefore there is an enforceable legal right is acceptable. Such cancellation cannot lead to situation enforcing purchase of promotional materials for the past. The facts of the case mentioned in M/s. Kinetic Engineering Ltd. v. CCE, Aurangabad reported in 1999 (107) E.L.T. 150 (T) and in the case of M/s. Escorts Limited reported in 1998 (98) E.L.T. 206 (T) are applicable to the present facts of the case and impugned orders against the appellants/assessee are not sustainable. 11.3 In the case of M/s. Swaraj Mazda Limited (Excise Appeal No. 875 of 2008), the appellant has claimed that there is no connection of s....