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2013 (11) TMI 694 - AT - Central ExciseValuation of re-treading materials – transaction value - Price paid over and above - whether the compensation given by the buyers of the tread rubber to the appellants which is basically a non-interest free loan to the appellant, is required to be added in the assessable value of the tread rubber supplied by the appellant to their buyers. - Whether the price paid over and above has to be kept out of the assessable value of the goods – Held that:- the amount of compensation was not linked with quantity of tread rubber to be supplied and price of tread rubber fixed in the agreement was not depressed on account of compensation. - For example, if no tread rubber was supplied in 1996-97, even then compensation was to be received and in the absence of assessable value, the same would not have been includable. For this reasons, it was held by the Hon’ble Tribunal in the case of Mysore Kirloskar Ltd. [2002 (1) TMI 117 - CEGAT, BANGALORE] that addition of developing/designing charges of machines paid separately by customers should have been done after establishing their nexus with negotiated price of machine. - Decided in favor of assessee.
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