2016 (8) TMI 931

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....eement of M/s. Skoda Auto India Pvt. Ltd. with their dealers,  the dealers were required to sell goods in their own geographical jurisdictions and in case they sold the goods in some other  dealers in geographical jurisdiction, they were required to pay a penalty to the appellants.  Such penalty was recovered through debit notes.  Revenue sought to include the amount of penalty recovered from the dealers in the assessable value and to recover duty on the same by issue of  a notice. The notice also sought to recover interest and impose penalty under Section 11AC.  The Deputy Commissioner confirmed the demand of duty, interest and penalty. The Commissioner (Appeals) upheld the demand of duty and interest but redu....

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....Industries Ltd. - 2004 (165) ELT 127 (Tri-Del).  He also relied on the decision of Hon'ble Supreme Court in the case of Sony India Ltd. - 2004 (167) ELT 385 (SC). 4.  We have gone through the rival submissions.  We find that the Revenue's appeal has been filed  solely for enhancement of penalty from Rs. 1,50,000/- to Rs. 9,09,718/-.  Cross objection has been filed by the M/s.Skoda Auto India Pvt. Ltd.  to dismiss the appeal filed by the Revenue. M/s.Skoda Auto India Pvt. Ltd.  is in appeal against the impugned order seeking to set aside the demands confirmed in the impugned order.  The proceedings in this case have been initiated for inclusion of penalty paid by the dealers of M/s.Skoda Auto India ....

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....ra 5 has clearly noted that there is no written agreement. He draws conclusion from reply dated 9-3-2005 of the assessee, wherein they have reimbursed to few of the dealers, to come to the conclusion that there is oral agreement between the assessee and the dealers to whom reimbursement has not been done. We are not agreeable with this finding. There has to be written agreement with an enforcement clause to enforce the legal right to insist on advertisement under the agreement. In the absence of any such agreement with such a clause then in that event, the advertisement expenses incurred by the dealers on their own account cannot be added to the account of the assessee. The judgments cited by the appellant clearly apply to the facts of the ....