TMI Blog2013 (10) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... en the contract between the manufacturer and dealer envisages incurring of certain expenses by the dealers on advertisement and failure to incur such expenses on advertisement gives a right to the manufacturer to get the advertisements done of his own and recover the expenses from the dealer, the advertisement expenses incurred by the dealer can be added to the assessable value. There is nothing in their agreements from which it can be concluded that appellants had enforceable legal right against the dealers to insist on incurring of certain amount of expenses on advertisement and publicity of the appellants products - Just a Clause in the agreements requiring the dealers to make efforts for promoting sales of the appellant's products ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the advertisement and publicity expenses the same must be included in the assessable value of the goods cleared by the appellants to the dealers. It is on this basis that in case of M/s. Honda Seils Powers Products Ltd., two duty demands of Rs . 20 ,61,226 /- for the period from Aparil'2000 to Nov.'03 and of Rs . 14,61,616/- for the period from April'04 to March'08 were confirmed along with interest with imposition of penalty of equal amount under section 11AC vide orders passed by the Assistant Commissioner. On appeals being filed to C.C.E (Appeals), the Assistant Commissioner's Order were upheld vide order-in-appeal No. 49-50-CE/MRT-II/2006 dt. 13.03.2006. Against this order of the Commissioner (Appeals) the appeal No . E/1935-1936/2006 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 (Tri.-Del.) , the civil appeal by Government against which was dismissed by Apex Court vide judgment reported in 2004 (158) ELT- A-42(SC) and the Apex Court's judgment in the case of C.C.E., Surat Vs. Surat Textile Mills Ltd. Reported in 2004 (165) ELT-176 (SC) wherein it has been held in clear terms that advertisement expense incurred by a manufacturers customers (Dealers) can be added to the assessable value only if the manufacturer has enforceable legal right against the customers (Dealers) to insist on incurring of such expenditure by them, that same view has been taken by the Tribunal in case of Maruti Suzuki India Ltd., reported in 2008 (232) ELT 566 ( Tri.Del .) wherein it was held that only when the contract between the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d publicity, a part of which had been reimbursed by the appellants to the dealers. The point of dispute is as to whether the expenses on advertisement and publicity expenses incurred by the dealers, which were borne by them, are to be added to the assessable value of the goods or not. On this point, it is seen that the Apex Court in case of C.C.E., Surat Vs. Surat Textile Mills Ltd., reported in 2004 (167) ELT-379 (S.C.) has held in clear terms that only when a manufacturer has enforceable legal right against his customers/dealers to insist on incurring of expenses on advertisement, the advertisement expense incurred by the dealers can be added to the assessable value. Same view has been taken by the Tribunal in case of Maruti Suzuki Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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