TMI Blog2013 (12) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... y out Pre Delivery Inspection as well as said services in regard to a car which is sold to a customer - a dealer is required to pay an amount to the assessee towards the cost of the car and a dealer cannot charge more than the amount specified by the assessee - The difference between the price so fixed by the assessee and the price paid by the dealer constitutes what is called as dealer’s margin - A dealer has to spend money to conduct PDI as well as render said services - the dealer is required to perform PDI as well as said services as a part of the dealer’s responsibility cast on him as per the dealership agreement. In all cases where the expenses incurred towards PDI and said services are solely borne by the dealer and the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ept of valuation of excisable goods for the purpose of charging the duty of excise has been changed from the concept of normal price in the course of wholesale trade to the concept of individual transaction value. The transaction value as explained by Section 4(3)(d) reads:- transaction value means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable to pay to, or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or at any other time, including, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling organization ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 3. Heard both sides. The learned advocate for the respondent submits that the issue is no longer res integra and is covered by a decision of the Hon ble High Court of Bombay in the case of Tata Motors Ltd. [2012 (286) ELT 161 (Bom)]. He further submits that there was a Larger Bench decision in the case of Maruthi Suzuki India Ltd. Vs Commissioner [2010(257)E.L.T. 226(Tri-LB)] having a contrary view and this also has been taken note by considering the issue by the Hon ble Bombay High court. Since the issue is no longer res integra and stands finally decided, he submits that the appeals may be rejected. 4. The learned DR would submit that the issue is before the Hon ble Supreme Court as Maruthi Suzuki India Ltd. have filed an appeal aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircular letter F. No. 354/81/2000/TRU dated 30th June, 2000. A reading of these two Circulars would clearly go to show that the respondents wanted to clarify the term transaction value and these two Circulars were to be used as guidelines while arriving at the assessable value. Considering these Circulars, we are inclined to accept the submission advanced by learned Senior Counsel Mr. Sridharan that the expenses incurred towards PDI and said services cannot be included in the assessable value. It is peculiar to note that after issuing Circular dated 1st July, 2002, the respondents issued Circular dated 12th December, 2002 and in the said Circular, the respondents clearly admitted that the expenses incurred towards Pre-Delivery Inspection an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the term transaction value . In our view, on the basis of record it is clear that the petitioners do not render any services to the dealer and no cost is incurred by the petitioners qua the dealer towards the term servicing . As such, the petitioners have not included any amount in the assessable value with reference to term servicing and as such the expenses incurred towards PDI and said services, which expenses are incurred solely by the dealer without reference to the petitioners cannot be included in the term servicing appearing in the term transaction value . For the reasons mentioned aforesaid if a dealer incurs expenses towards the PDI as well as free after sales services without reference to the manufacturer like petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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