Home Case Index All Cases Central Excise Central Excise + SC Central Excise - 2005 (2) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (2) TMI 112 - SC - Central ExciseWhether reimbursement of advertisement expenses by the manufacturer from the dealers, after initially incurring the same, is includible in the assessable value? Held that:- That there is conceptual difference between "expenses" and "reimbursement". This difference has not been taken into account by the Tribunal. In the present case, it appears from the decision of the Adjudicating Authority that the Company had initially incurred advertisement expenses which expenses were subsequently reimbursed by them from their dealers. It is not clear from the decision of the Adjudicating Authority as to at what stage the reimbursement took place. It is not clear from the decision of the Adjudicating Authority as to whether the reimbursement was at the end of the year by way of adjustment of accounts or whether the reimbursement had taken place within a short interval of time from the date of the advertisement. The fundamental point however in the present case is whether such reimbursements by the manufacturer are includible in the assessable value and whether such reimbursement would constitute "advertisements by the dealers on their own account" or whether they would fall in the category of "advertisements solely made by the assessee on their own account" for computing the assessable value. These questions were not the subject matter of the decisions in Philips India Ltd. (1997 (2) TMI 120 - SUPREME COURT OF INDIA) and Mahindra & Mahindra Ltd. (1998 (2) TMI 271 - CEGAT, NEW DELHI). The Tribunal was wrong in applying the aforestated two decisions to the facts of the present case. For the aforestated reasons, the appeal is allowed;
|