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2004 (1) TMI 72 - SC - Central ExciseWhether the amount i.e. security deposit for installation, customer training and cost of labour for repairs done by the dealer during the warranty period is to be included while calculating the assessable value of the diesel engine? Held that:- The ratio laid down in cases relied upon by respondents has no application to the facts of the present case. In those cases, no amounts were being recovered from the customer. In these cases there were agreements between the manufacturers and the dealers by virtue of which the dealers were providing free 'after sales service'. The question, therefore, was whether the value of these services was included. As the customer did not pay for them, it was held that this value could not be included. In the present case, the customer is compulsorily paying this amount. Therefore, the ratio of those cases cannot apply. The order of the Commissioner (Appeals) is restored stating that the security deposit in question is on account of installation work and hence should not be included in the assessable value is not factually correct and is seen as an attempt to divert a part of the true price of the goods to "installation charges".
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