TMI Blog1997 (8) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... ect from 1-3-1994, they attracted ad valorem duty at the rate of 50%. The assessees were found to have collected extra amounts over and above the Invoice Price (assessable value) in respect of advertisements, publicity and sales promotion charges by raising debit notes. The fact of raising the aforesaid debit notes or the collection of extra amounts towards the aforesaid advertisement and publicity expenses was not intimated to the Department. Shri Y.V. Derayya, Manager of the assessee firm admitted in his statement dated 23-7-1994, the extra collection of charges on debit notes from the dealers and that the same was not intimated to the Department. The total additional consideration on account of the above during the relevant period i.e. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant contended before us that the learned Collector did not take into consideration the fact that the advertisement and publicity charges were on account of local advertisements such as shop painting which were intended to boost the sales of the dealers and did not have any effect on the image of the products manufactured by the appellants. The Collector also failed to take into consideration that the above advertisement was post removal charges. He further contended that the charges incurred for boosting the sales of the dealers should be normally borne by the dealers themselves. It was only an established practice that such collections were taken from the dealers on their behalf. He also relied on the letters furnished by the dealers to sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be added to the assessable value. In this connection the appellants had produced letter given by Soft Drink Advertising Marketing Services Pvt. Ltd., dated 7th April, 1993. In that letter, the first para reads as follows : We are pleased to inform you that during the last 3 years of our activity in terms of rendering advertising and related services for your brands in national media as well as attending to local needs, we have been able to maintain media plans for various brands on the basis of needs to propel consumer demand. For maintaining market share in a competitive situation we have to see that the share of voice in the market is at least proportionate to the share of market. Add to this the cost of media rates going up b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e are not applicable to the facts of this case. In that case in para 7 the Tribunal has held as folows : 7. On a consideration of the entire record in the light of submissions made by both sides, the following circumstances emerge :- (a) Independent wholesale buyers of 48% of products and the Bombay wholesaler who purchased 52% of the products paid the same price to the assessee; (b) No concessional price was offered to the Bombay wholesaler; (c) The Bombay wholesaler incurred expenses of Rs. 50 lakhs for advertising but this was not under any agreement with the assessee, but on its own; (d) There is no material to show that other wholesale buyers did not incur any expenditure for advertising; (e) The advertising activity of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses incurred by the Bombay wholesalers was compensated by the assessee. There was no material to show that the transaction price was the sole consideration. But in this case the very fact that the appellant issued credit notes for these charges and in the absence of any agreement to show that the advertisement was done on behalf of the dealers it is to be held that the appellant has incurred the same on the advertisement of their branded products. 8. Reliance was placed on the decision of the Tribunal reported in 1991 (52) E.L.T. 449. In that particular case there was an agreement between the appellants as well as the buyers. That agreement disclosed that the transaction between the assessee and the buyers was on principal to princi ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
