2016 (11) TMI 822

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....2016-TIOL-2217 CESTAT-CHD. As the issue involved in the matter has already been dealt by this tribunal in appellant's own case wherein this Tribunal observed as under: 9. "A perusal of the various judgments relied upon, on behalf of appellants, leads as to the following conclusion on the points of law. The advertisement for any product manufactured may fall under Rule 3 broad categories. First category is the advertisement done by the manufacturer on their own and at their own expenses. Such advertisements make the product visible and known to the prospective buyers. Such advertisements not only benefits the manufacturer but also the dealers. As such advertisements make the job of selling relatively easier. There are also adver....

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....0070% to 0.233% of total sale value. In view of the above, it appears that these advertisements cannot be held to have been carried out by the buyers on behalf of the manufacturer; that the assessee has no enforceable legal right to insist on incurring such advertisement expenditure. The contention of the Department that there is no option available to the dealers does not stand proved. The stand of the department that the failure of the part of the dealer may lead to the cancellation of dealership and therefore there is a enforceable legal right is acceptable. Such cancellation cannot enable recovery of dealer's share of cost of advertisements. Therefore, this case is squarely covered by the decision of the Hon'ble Supreme Court in....

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.... 29.2 Undesirable Advertising The dealer will not advertise or promote the products or services in such a way as may annoy cause to or detract from the company or the products or services or other Authorized Dealers. Should the company consider that any advertisement announcement or other advertising or promotional material to be undesirable. The Dealer shall immediately withdraw the same at its expense and not repeat it. 30. Display at outlets: The Dealer shall display signs at the outlets indicating its status as an Authorized Dealer as per the corporate identity of a type approved or issued by the Company and in such number as the Company may reasonably require. The Dealer shall maintain the outlet and al/ dis....