TMI Blog2009 (7) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... se of carrying out pre-delivery inspection and rendering three free services during warranty period at the rate of Rs. 1750/- per vehicle. 25. I confirm the demand of Central excise duty totally amounting to Rs. 58,01,062/- (Rupees Fifty-eight Lakhs One Thousand Sixty-two only) under Section 11A of the Act and order its recovery from the assessee. 26. I impose a penalty of Rs. 58,01,062/- (Rupees Fifty-eight Lakhs One Thousand Sixty-two only) under Section 11AC of the Act and order its recovery from the assessee. 27. I order recovery of interest on the above amount demanded from the assessee at the appropriate rate under Section 11AB of the Act. 2. Heard both the sides and perused the records. 3. The applicants are engaged in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses, the Tribunal had taken a view that such expenses are not includible in the assessable value of the vehicle in the case of M/s. Maruti Udyog Limited v. C.C.E. - 2004 (170) E.L.T. 245. If the expenses incurred by the dealers towards PDI and after sale service are not includible even if these were not reimbursed by the manufacturer, the said expenses do not prima facie seem to be includible in the assessable value, when the manufacturer incurs such expenses by reimbursing the amount equal to the expenses incurred by the dealers towards such expenses. 5. Further, it is well-settled legal position that where the excisable goods are sold at a price, which is a sole consideration for the sale, the cost of production or the fact that the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice dated 30-4-2004 considered all the facts and proposed to demand duty only for the period prior to 1-9-2003 by including the PDI and after sales service expenses incurred by the dealers in the assessable value of the motor vehicles manufactured and sold by the applicants to such dealers. The applicants Circular dated 26-8-2003, which is relied upon in the present show cause notice dated 22-9-2008 for the period after 1-9-2003, was also available to the Department during 2003-04, when the investigations were conducted by the Department for the purpose of issue of show cause notice dated 30-4-2004. The fact that the applicants have been paying duty on their price to the dealers was also known to the Department during 2003-04, when the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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