2020 (2) TMI 1194

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....fly stated the facts of the case are that the respondents are engaged in the manufacture of excisable goods namely, Motor Vehicles falling under Chapter 8703.00 of the Central Excise Tariff Act, 1985. During the relevant period, appellant had sold motor vehicles through Dealers across the country. In the Letter of Intent/agreement with the dealers, it is inter alia mentioned that the advertiement and sales promotions of Motor Cars would also be undertaken by the dealers. Alleging that in view of the Circular No. 643/34/2002-CX dated 1.7.2002 and Circular No. 681/72/2002-CX dated 12.12.2002, the cost of advertisement incurred by the dealers is includible in the transaction value, periodical show-cause notices were issued to the respondent fo....

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....ner of Central Excise, Delhi - 2008 (232) ELT 566 (Tri-Del). He has also submitted that the Board in its Circular no. 643/34/2002-CX dated 1.7.2002 and the Circular issued thereafter clarified that advertisement expenditure incurred on behalf of the manufacturer is includible in the assessable value of the manufactured goods. Hence, the order is bad in law and liable to be set aside. 4. Per contra, learned Advocate Shri Sachin Chitnis for the respondent has submitted that the issue is no more res integra and considered by the Tribunal pursuance to remand from the Hon'ble Supreme Court in the case of Ford India Pvt. Ltd. Vs. Commissioner of Central Excise, Chennai-III - 2017 (6) GSTL 273 (Tri-Chennai). The said judgment was delivered ....

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....ing of the various clauses of the said agreement does not lead to an inference that the same provides an enforceable right to the respondent in relation to advertisement and sales promotion by the dealers. Further, we find that the Hon'ble Supreme Court in TVS Motors Co. Ltd.'s case while considering the includibility of pre-delivery inspection charges and after sales service charges interpreting the expression "any amount that buyer is liable to pay to", "by reason of" or "in connection with the sale" mentioned in the definition of 'transaction value', observed that such charges cannot be includible in the transaction value of the goods. Their Lordships observed at para 8 and 11 as follows: - "8. What follows from the above is....

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....d legal position, we find no error in the view taken by the Tribunal giving benefit to the assessee. Both the sides were in unison in accepting the position that no major change had been incorporated w.e.f. 1-7-2000 with emphasis on the 'different transaction value' from the 'assessable value', the essence of valuation principles had not undergone major change and the decisions delivered by this Court with regard to unamended provision on the principle of valuation were still applicable in determining the transaction value under the new provisions of Section 4 of the Act red with Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. In fact, the Order-in-Original in M/s. TVS Motors Company Ltd. or in other cases ....