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2005 (3) TMI 11 - SC - Central ExciseCentral Excise – Advertisement expenses – Assessable value - whether the advertisement expenses incurred by M/s. Soft Drinks and Advertising Marketing Services Pvt. Ltd. to advertise the aerated products and manufactured by the third party bottlers could be includible in the assessable costs of the non- alcoholic beverages manufactured by the respondent - Held that:- Advertisement expenses incurred for the soft drinks products manufactured by the bottlers cannot be included in the assessable value of concentrates manufactured by the appellants even by applying the ratio of Supreme Court judgment in the Bombay Tyre International case (1983 (10) TMI 51 - SUPREME COURT OF INDIA, NEW DELHI) according to which it is only the advertisement and sales promotion expenses incurred for the goods under assessment that can be added to the assessable value. A perusal of the appellants' agreement with the bottlers also shows that the bottler is enjoined to undertake appropriate advertising and sales promotion activities for the beverage which again indicates that the obligation cast on the bottler as per the agreement does not extend to or cover the concentrates manufactured by the appellants. In the circumstances, it is held that the department has failed [to] establish their case for adding the advertisement expenses to the assessable value of concentrates manufactured by the appellants with satisfactory evidence, and, as such, the orders of the lower authorities in this regard are not sustainable. The demand on this count is, therefore, set aside - Following decision of Pepsi Foods Ltd. v. Collector of Central Excise [1995 (10) TMI 222 - CEGAT NEW DELHI] - Decided against Revenue.
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