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2018 (11) TMI 345 - AT - Central ExciseValuation - includibility - advertisement cost borne by distributors - Revenue is of the view that the distributors had borne a part of the advertisement cost which otherwise would have been incurred by the respondent - Rule 6 of the Central Excise Valuation Rules, 2000, read with Section 4 of the Central Excise Act, 1944. Held that:- The Clause 2.12 (c ) makes it clear that the distributor ‘shall’ advertise the product of the respondent. There is a further stipulation that the advertisements will have to be approved by the respondent. However, after going through the entire agreement, no clause is found which deals with the expenditure on such advertisement. On the basis of the agreement it cannot be stated that the respondent has obligated the distributors to incur the advertisement expenses. Tribunal had occasioned to consider a similar matter in the case of Maruti Suzuki India Ltd. vs. CCE [2008 (8) TMI 118 - CESTAT NEW DELHI]. In the above case the Tribunal examined whether the dealer’s share of expenses can be considered as additional consideration for sale to be added to the assessable value. The Tribunal was considering, in that case, joint advertisements whose expenses were shared between the manufacturer and the dealer - it was held by the Tribunal that since extent of expenses of dealers is not linked to number of vehicles sold by them & advertisement is not done by all dealers, dealers expenditure on advertisements is not includible. Appeal dismissed - decided against Revenue.
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