Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 1988 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1988 (4) TMI 69 - SUPREME COURTWhether the four year service contract charge is includible in the value of the refrigerators for the purpose of assessment of Central Excise Duty under Section 4 of the Act? Held that:- The Tribunal observed that the respondents herein offered the four years service by a stamped endorsement on their sale invoice, itself, it did not mean that the subsequent exercise of option by the buyer related back to the date of purchase itself. It was also found that there was no evidence to conclude that the service contract was a facade to split the true value of refrigerators into taxable and non-taxable components. In that view of the matter, the Tribunal correctly set aside the order of the Collector of Central Excise (Appeals) and allowed the appeals. The contract for four years warranty service was optional, which was entered into later on. This is clearly after-sale facility and cannot be includible in the assessable value of the refrigerators.
|