TaxTMI 
TaxTMI 
2026 (3) TMI 408
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....R PER: SHRI P. DINESHA : These Appeals arise out of different impugned Orders-in-Appeals passed by the Commissioner of GST & Central Excise (Appeals), Chennai and the only issue in all these Appeals is the valuation of demo vehicles sold to the dealers. 2. Shri S. Jaikumar, Ld. Advocate appearing for the Appellant, would submit that the Revenue has raised the demand alleging that the discount offered by the Appellant on the demo vehicles to its dealers are not deductible under Section 4 of the Central Excise Act, 1944, which is to be included in the assessable value. The lower authorities also relied on the orders of Chennai Bench in the cases of Ford India Pvt. Ltd. Vs Commissioner of Central Excise, Chennai [2011 (7) TMI 1044-CES....
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....i Motor India Ltd. supra, the ratio in the said cases are not applicable. He would thus pray for allowing the Appeals. 4. Per contra, Shri M. Selvakukmar, defended the impugned orders. He would contend that each and every aspect has to be considered in the orders of Ford India Pvt. Ltd. and Hyundai Motor India Ltd. supra and further the said orders have been upheld by the Hon'ble Apex Court. He would thus pray that the Appeals be dismissed by upholding the impugned orders. 5. We have considered the rival contentions and perused the documents placed on record; we have also gone through the judicial precedents relied upon during the course of arguments. After hearing both sides, we find that the only issue is, 'whether the discount offe....
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....normal cars cleared to the dealers. In this regard, we find that the issue of valuation on Demo cars stands settled by this very Tribunal Bench orders in the case of Ford India Ltd. v. CCE, Chennai - reported in 2010-TIOL-329-CESTAT-MAD and 2014 (302) E.L.T. 257 (Tri-Chen.) and also in the case of Royal Enfield v. CCE, Chennai - 2012 (280) E.L.T. 92 (Tri.-Chennai) wherein the Division Bench of this Tribunal had consistently upheld the demand of differential duty on Demo Cars and rejected the assessee's appeals except waiving the penalties. The relevant Paragraphs 3 & 4 of the latest decision of this Tribunal's order in the case of Ford India Pvt. Ltd. v. CCE, Chennai - 2014 (302) E.L.T. 257 (Tri.-Chennai) are reproduced as under :- ....
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....a special discount was given for demo cars which is not the case in the case of normal car. Since the demo car is not at normal sale, but with a condition that it should be used for demonstration purpose/test drive, the price charged for the sale of demo cars is not a normal transaction at the time of place of removal. There was no evidence placed by assessee that the entire sale of Demo cars was sold at higher price whereas we find that the lower authority has gone by few examples of the price of the demo car which is higher than the normal car and the same cannot be taken for entire transaction. As rightly clarified by the Board in their Circular No. 6/40/2002-CX, dated 1-4-2003, at the time of clearance from the factory gate, there is no....