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2013 (10) TMI 450 - AT - Central ExciseValuation - inclusion of Expenses incurred by the dealers - Whether the expenses on advertisement and publicity expenses incurred by the dealers, which were borne by them, are to be added to the assessable value of the goods or not – Held that:- Following C.C.E., Surat Vs. Surat Textile Mills Ltd. [2004 (4) TMI 81 - SUPREME COURT OF INDIA] - only when a manufacturer has enforceable legal right against his customers/dealers to insist on incurring of expenses on advertisement, the advertisement expense incurred by the dealers can be added to the assessable value - only when the contract between the manufacturer and dealer envisages incurring of certain expenses by the dealers on advertisement and failure to incur such expenses on advertisement gives a right to the manufacturer to get the advertisements done of his own and recover the expenses from the dealer, the advertisement expenses incurred by the dealer can be added to the assessable value. There is nothing in their agreements from which it can be concluded that appellants had enforceable legal right against the dealers to insist on incurring of certain amount of expenses on advertisement and publicity of the appellants products - Just a Clause in the agreements requiring the dealers to make efforts for promoting sales of the appellant's products cannot be treated as a clause imposing legal obligation on the dealers to incur certain level of expenses on advertisement – orders set aside – Decided in favour of Assessee.
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