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2015 (8) TMI 101 - AT - Central ExciseValuation of goods - Whether the advertisement expenses incurred by the appellant would be includible in the assessable value to the extent the same have been recovered from the dealers - Held that:- when it is not disputed that the advertisement of the appellant's products in the areas of the respective dealers also mention the dealers' name and address and those advertisements have also benefitted the dealers, the amount being recovered by the appellant from the dealers cannot be said to be for the reason of or in connection with the sale of goods, as this amount would be for the advertisement and publicity effort of the appellant which has benefitted the dealer. - in the dealership agreements, there is no such clause requiring the dealers to incur certain specified quantum of expenses on the advertisement and publicity of the appellant's product. The clauses of requiring the dealers to vigorously promote, develop and maintain sales of the product and parts to the satisfaction of and in the manner required by the appellant cannot be treated as the clause which gives an enforceable legal right to the appellant to insist on incurring of certain quantum of expenses on advertisement by the dealers. For this reason also, the advertisement expenses recovered from the dealers would not be includible in the assessable value. - impugned order is not sustainable on merits. - Decision in the case of HERO HONDA MOTORS LTD. Versus COLLECTOR OF C. EX., NEW DELHI [1997 (1) TMI 304 - CEGAT, NEW DELHI] followed - Decided in favour of assessee.
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