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2014 (3) TMI 709 - CESTAT BANGALOREValuation of goods - Inclusion of pre-delivery inspection charges and free maintenance expenses - Validity of CBEC Circular No.643/34/2002-CX dated 1.7.2002. - Held that:- In Tata Motors Ltd. [2012 (9) TMI 244 - BOMBAY HIGH COURT], it was held that, as per Section 4(3)(d) of the Central Excise Act, 1944 the PDI and free after sales services charges can be included in the transaction value only when they are charged by the assessee to the buyer. - The circulars, inter alia, purport to hold that where the assessee sells the motor vehicles to a dealer (buyer) at a given price and the dealer in turn sells the said motor vehicles to a customer at a price with dealers margin which includes the PDI charges and after sales service charges, then, the assessable value for determining the Central Excise duty payable by the assessee has to be determined by including the PDI and after sales service charges even if they are not been charged by the assessee to the dealer, which in our opinion is contrary to the provisions of Section 4(3)(d) of the Central Excise Act, 1944. In the case of Tata Motors Ltd. [2012 (9) TMI 244 - BOMBAY HIGH COURT], HC had taken note of the decision of the Larger Bench in the case of MARUTI SUZUKI INDIA LTD [2010 (8) TMI 49 - CESTAT, NEW DELHI] and yet came to the conclusion favourable to the appellants in that case. - Decided in favor of assessee.
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