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2014 (11) TMI 118 - AT - Central ExciseValuation of goods - inclusion in the assessable value of the expenses incurred on ‘advertisement and publicity’, ‘incentive and discount to dealers’ and vehicle and handling staff cost’ - Held that:- ‘incentive and discount to dealers’, expense is on account of giving to free duty paid bottles of aerated waters to the dealers on purchase by them of certain quantity of the crates. The appellant thus give discount in form of free duty paid bottles of aerated waters instead of reduction in price. In terms of Apex Court judgment Bombay Tyre International Ltd.(1983 (11) TMI 70 - SUPREME COURT OF INDIA), trade discount is not to be included in the assessable value if it is known price to sale. Some view has been expressed by the Apex Court in case of Union of India Vs. Madras Rubber Factory Ltd., reported in [1995 (5) TMI 28 - SUPREME COURT OF INDIA]. In this case from the records it is clear that discount policy was known to the dealers and discount in form of free duty paid bottles of aerated waters were given to the dealers in accordance with the discount policy. Therefore it cannot be said that the discount was not known prior to sale. In view of this, the impugned order dis-allowing the deduction of this trade discount given in form of free duty paid bottles of aerated waters is not correct. There is no evidence to show that this expense had been incurred on Advertisement & Publicity Campaign organized by the appellant. Even if this is so, since this expense has been incurred by the Appellant, it is deemed to be included in the assessable value. Therefore, the impugned order confirming the duty demand on the expenses shown in the Balance Sheets on ‘Advertisement and Publicity’, is not correct. Since these expenses represent the expense incurred on the salaries of the drivers/helpers of the vehicles for transport of the goods to the dealers premises and also the expense incurred on maintenance of the vehicle and loading/un-loading of the goods outside the factory, in our view, these expenses would not be includible for the assessable value and as such the impugned order confirming duty demand on these expenses is not correct. impugned order is not sustainable - Decided in favour of assessee.
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