TMI Blog2007 (1) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... te about the correct assessable value for scooters manufactured and sold by the appellant after payment of duty. The period of dispute is Jan. 84 to May 87. Under the impugned order, the Commissioner has found that the cost, realisations in respect of nine items were required to form part of the assessable value of scooters and on account of the exclusion of these items, non-payment of duty of about Rs. 30 lakhs took place. We may read the Commissioner s findings : In view of the above facts the various demands confirmed on different grounds are summarised below : S.No. Grounds Duty confirmed (Rs) 1. Excess Recovery of Insurance Rs. 6,31,096.88 2. FSE Salary Rs. 5,65,219.94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that there is no merit in the demands in as far as they relate to the aforesaid items in view of the ruling contained in the judgment of the Hon ble Supreme Court. 5. In regard to Forwarding charges the submission is that this recovery is towards costs incidental to the despatch of the scooters to outstation buyers and does not relate, in any way, to delivery on ex-factory basis. It is noted that this charge is collected over and above the ex-factory sale price. It is well-settled that all costs incurred up to delivery at the factory gate are required to form part of assessable value; but not costs beyond the factory gate. Since the forwarding charges in the present case are in relation to freight forwarding, it cannot be part of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r delivery is to form part of assessable value, and that the additional supply of plastic material is not in the nature of packing. This contention of the appellant has merit as it is not the common practice to pack scooters before making delivery at the factory gate. 8. In regard to Oil Supply it is being explained that the supply takes place at the time of servicing of the scooter at the dealers end and not at the time of clearance of the scooter from the factory. The submission is that the measure of assessable value under the Act is the ex-factory sale price and therefore, cost of supplies made subsequent to sale at the stage of servicing, maintenance etc. can not form part of assessable value. It is to be noted that during the rele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder is that the cost of this form should be included in the assessable value of the scooters. The submission of the assessee is that the cost of this booking form is not a part of the sale consideration of the scooters and therefore, it cannot form part of the assessable value. We find merit in this contention also in as much as the sale price of scooters was not linked to the cost of the form. The cost of the form is a separate item altogether, like the cost of similar forms (stationery items) like money order forms. The sale of the booking form was a separate sale of a different item from scooter as not all purchasers of forms need or would book the scooter. 11. A demand of over Rs. 9 lakhs is on a finding that retention charges coll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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