Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 163 - AT - Central ExciseValuation - includibility - advertisement expenses - case of the department is that the 50% advertisement expenses incurred by the dealers/distributors should be included in the assessable value of the appellant goods on the ground that the 50% sharing borne by the dealers/distributor is nothing but sales promotion expenses - Held that: - there is no compulsion on dealers/distributors to perform the advertisement. It is on the discretion of the dealers/distributors that whatever advertisement in respect of the appellants goods is done, 50% of the actual cost will be borne by the appellant and remaining 50% will be borne by the dealers/distributor. In this fact, the 50% is borne by the dealers/distributors which is the expenses of the dealers/distributors and the appellant is nothing to do with that portion of the 50% - Amount of such advertisement is not flowing to the appellant as an additional consideration. Therefore it cannot be said that the dealers/distributors bearing the advertisement cost to the extent of 50% is part of the assessable value. The relationship between the appellant and the dealers/distributors is on principal to principal basis, therefore only consideration received by the appellant alone will form the transaction value, no further addition should be made. Appeal allowed - decided in favor of appellant.
|