Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 114 - AT - Central ExciseInclusion of cost of pre delivery inspection (PDI) and free after sales services to assessable value of the vehicles sold - Held that:- Following M/s. Tata Motors Ltd. Versus Union of India & Others [2012 (9) TMI 244 - BOMBAY HIGH COURT] - As and when the car is removed out of the factory, Excise duty is payable - The assessable value has to be determined u/s 4(1)(a) of the central excise act as amended - the assesses and the dealers were not related to each other and the price was the sole consideration – Thus, the value to be taken up for the purposes of Excise duty is the transaction value. A dealer is required to carry out Pre Delivery Inspection as well as said services in regard to a car which is sold to a customer - a dealer is required to pay an amount to the assessee towards the cost of the car and a dealer cannot charge more than the amount specified by the assessee - The difference between the price so fixed by the assessee and the price paid by the dealer constitutes what is called as dealer’s margin - A dealer has to spend money to conduct PDI as well as render said services - the dealer is required to perform PDI as well as said services as a part of the dealer’s responsibility cast on him as per the dealership agreement. In all cases where the expenses incurred towards PDI and said services are solely borne by the dealer and the manufacturer have nothing to do with the said expenses then adding those expenses in the assessable value would be contrary to the provisions of Section 4(1)(a) r/w Section 4(3)(d) of the Central excise Act - Revenue have not been able to place on record any material to show that the amount incurred towards PDI and said services can fall within the definition of the transaction value - Thus as per Section 4(3)(d) of the Central Excise Act, 1944 the PDI and free after sales services charges can be included in the transaction value only when they are charged by the assessee to the buyer – Decided against Revenue.
|