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2011 (7) TMI 876 - AT - Central ExciseValuation - sale of promotion/POP materials by the appellant to their dealers - Department was of the view that the amount realized by the appellant from their dealers on account of sale of promotional and POP materials and the amount of Rs. 9,14,65,053/- incurred by the dealers on advertisement and publicity of the Appellant’s products, in terms of the Agreement, was part of the transaction value, on which duty was required to be paid and which had not been paid - Since the cost of the promotional/POP materials supplied by the appellant to the dealers is realized from them and these materials are used by the dealers for advertisement and sales promotion of the appellant’s products, this prima facie amounts to dealers bearing the cost of promotional/POP materials used in the advertisement & publicity of the Appellant’s products - Decided against the assessee Regarding duty demand of Rs. 1,65,19,459 - dealers, during the period of dispute, have incurred an expenditure of Rs. 9,14,65,053/- on the advertisement and promotion of the appellant’s products - As per Appellant’s agreement with their dealers, it is clear that the dealers are under obligation to advertise and promote the Appellant’s products within their area at their (dealers’) expenses - Decided against the assessee by way of direction to deposit the entire amount of duty
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