TaxTMI 
TaxTMI 
2017 (6) TMI 372
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....ehalf of the appellants and part of the said expenses were reimbursed to the dealers by the appellant and remaining part was borne by the dealers. The period involved in these appeals is from 01.01.2007 to 31.12.2007 and 01.01.2008 to 31.03.2012. During this period, the appellant did not include the advertisement and publicity expenses borne by the dealers in the assessable value. Revenue felt that these expenses should have been included in the assessable value of finished goods manufactured by appellant under the Central Excise Valuation Rules, 2000. Two separate show cause notices were issued for the period indicated above. In adjudication by the Commissioner, the demand of Rs. 2,98,71,073/- was confirmed for the period 01.01.2007 to 31.....
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....considered by the Tribunal in the above cited Maruti Suzuki India Ltd. Vs. CCE (supra) judgment. They also submitted that during the relevant period no advertising/operating policies were issued by the appellant to the dealers. 3. Ld. AR for the Revenue while reiterating the findings in the orders of the Commissioner, drew our attention to Paragraph 4.5, 10.1, 10.7, 12.1, 12.2, 12.3 and Paragraph 25 of the dealership agreement dt. 20.01.2009. He pleaded that in terms of the said provisions of the agreement, the appellant had enforceable legal rights and on failure of the dealers to perform any obligation under this agreement, the dealership can be terminated. 4. Heard the parties and examined the records. 5. The issue for decision in thi....
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....d to the assessable value. Same view has been taken by the Tribunal in case of Maruti Suzuki India Ltd. reported in 2008 (232) E.L.T. 566 (Tri.-Del.). 6. On going through the appellant's agreements with their dealers, we find that there is nothing in their agreements from which it can be concluded that appellants had enforceable legal right against the dealers to insist on incurring of certain amount of expenses on advertisement and publicity of the appellant's products. Just a Clause in the agreements requiring the dealers to make efforts for promoting sales of the appellant's products cannot be treated as a clause imposing legal obligation on the dealers to incur certain level of expenses on advertisement. In view of this, w....
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....Products or Services or other Authorised 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 Authorised 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 all displays in and around the outlet keeping in view the image of the Company and as specified by the Company from time to time. 31. PROMOTIONAL LITERATURE : The Dealer shall display and kee....