TMI Blog1998 (5) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 1,00,000/-. 2. Appellants engaged in the manufacture of Tractors, was selling the bulk of Tractors to M/s. Escorts Limited (E.L. for short) and rest to other Wholesale Dealers. Appellant was filing price lists from time to time indicating the Ex-factory wholesale price and discount allowed to wholesale dealers and seeking reduction of the same. On approval of the price lists, the tractors were being cleared on payment on duty based on the approved price. In 1984 the premises of the appellant and those connected with the appellant were searched and incriminating documents were seized. These documents showed that the cost of services like four free service during the warranty period, inspection on delivery, training to the ultimate buyer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33) E.L.T. 517 (Tribunal) = 1988 (25) E.L.T. 547 (Tribunal) and PSI Data Systems Limited - 1998 (89) E.L.T. 3 (S.C.). We, therefore, hold that cost of these three elements cannot be included in the assessable value. 4. There is no dispute that cost of defected parts replaced by the manufacturer during the warranty period has to be included in the assessable value. Labour charges involved in replacing the defective part and would be includible in the assessable value as seen in DEL Star Private Limited - 1998 (103) E.L.T. 302 (Tribunal) = 1997 (20) RLT 374 (Tribunal). Confirmation of demand, to this extent, would be valie. Subject to our finding on the question of limitation; the matter should go back to the Adjudicating Authority for work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore us. Learned Counsel is not able to show with reference to the copy of the agreement that the agreement disclosed that a part of the dealer s margin would be adjusted towards the cost of above services. Reference is made to the decision of the High Court of Delhi in the case of the appellant reported in 1993 (64) E.L.T. 18 (Delhi). The case relates to cost of free services during 1975. The judgment of the High Court refers to a particular clause in the agreement on the aspect of free service. This judgment cannot be of any assistance to the appellant in showing that break up of the dealer s margin had been disclosed and the fact that part of dealer s margin was to be adjusted towards the cost of the above service had been disclosed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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