TMI Blog2014 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... r cycle to the dealers. Observing again, at the cost of repetition, such training of the staff is absolutely optional for the dealers and it is seen that only a small percentage of the total staff of the dealers have undertaken such training during the relevant period in question. The same being in-connected with the sale of the motor cycle, we find that no favour with the Revenue's stand that the same is a consideration towards the sale of the motor cycle. If the same is a part of the sale value of the vehicle, the same would have been collected from each and every dealer, who would have further collected it from the customers. Based upon the information of Members registered under the passport scheme, the appellants were sending birthday and marriage anniversary cards to the said persons, for which purpose they have a central agency. A part of the said expenses were being recovered by the appellants from their dealers by issuing debit notes to them. - Consideration amount stands already paid by the dealer at the time of clearance of the motor cycle from their factory gate and the said activity of sending of birthday/marriage anniversary card to their customers is an activity u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 95/- per customer, which was being recovered from the dealers. In terms of the said scheme, the passport holders are entitled to free accidental insurance cover for one year worth ₹ 1 lakhs, invitation to events, musical nights, carnivals, monthly news letter of the company and information on motor cycle maintenance, accumulation of points on purchase of spares and service of motor cycle. Further the appellant was also recovering amounts from their dealers by issuing a debit note in respect of the expenses incurred with the activity of sending birthday cards and marriage anniversary. 3. By entertaining a view that all the receipts of the appellant from their dealers were in the nature of extra consideration and was required to form part of the transaction value in terms of new Section 4 of the Central Excise Act, 1944, which came into force w.e.f. 01/07/2000, proceedings were initiated against the appellant by way of issuance of the show cause notice dated 06/11/08. The notice proposed confirmation of demand of duty of ₹ 20,08,36,738/- by invoking the longer period of limitation for the period October 2003 to August 2008. The proposal to impose penalty was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sole consideration for the sale, be the transaction value ; (b) in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. {Explanation :- For the removal of doubts, it is hereby declared that the price-cum-duty of the excisable goods sold by the assessee shall be the price actually paid to him for the goods sold and the money value of the additional consideration, if any, flowing directly or indirectly from the buyer to the assessee in connection with the sale of such goods, and such price-cum-duty payable on such goods.} (2) .. (3) For the purpose of this section, - (a) .. (b) ... (c) (c) transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, includin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, travel boarding/lodging to outside trainer and company personnel, food, tea and snacks are fully borne by the company. Only training hall charges, cost of hiring training equipment like projectors, PA system etc. is recovered at 50% cost from the dealers and 25% from the service point dealers. As is seen, the dealers staff training programme is a scheme innovated and executed from the head office of the company and not from the factory located at Gurgaon. The same is aimed at providing better technical knowledge about the goods and the soft training to the various field staff, for the purpose of understanding the product and further extending the same to their customers. The appellant is bearing the main expenses and it is only a part of the expenses towards training hall charges, cost of hiring of training equipment which is being recovered from the dealers as a contributory expenses. The said activity of training the staff of the dealers by no stretch of imagination can be held to be a consideration for the sale of the motor cycle to the dealers. Observing again, at the cost of repetition, such training of the staff is absolutely optional for the dealers and it is seen that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of money from the persons who opt for the scheme, can, by no stretch of imagination, be held to be a part of the transaction value. (3) Birthday and Marriage Anniversary Cards :- Based upon the information of Members registered under the passport scheme, the appellants were sending birthday and marriage anniversary cards to the said persons, for which purpose they have a central agency. A part of the said expenses were being recovered by the appellants from their dealers by issuing debit notes to them. The Revenue has held the said realization is a consideration for the value of the motor cycle sold to the dealers. According to the appellant such sending of birthday and marriage anniversary cards cannot be held to be transaction value under Section 4 of the Act in as much as these were post removal expenses, which had no connection or relation for sale of the motor cycle to the dealers. Consideration amount stands already paid by the dealer at the time of clearance of the motor cycle from their factory gate and the said activity of sending of birthday/marriage anniversary card to their customers is an activity unconnected with the sale of the excisable goods. For the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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