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2015 (10) TMI 767 - CESTAT MUMBAI

2015 (10) TMI 767 - CESTAT MUMBAI - 2016 (343) E.L.T. 449 (Tri. - Mumbai) - Valuation - advertisement by the dealers - duty on the amount reimbursed by the appellant to the dealers - Held that:- 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, but not limited to, any amount charged for, or to make provision for, advertising or publicity, marketing and selling o .....

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w Pages or the bill board which have been put on the sides of the road. - advertisements are mainly to the effect that a particular dealer deals in the product of the appellant. Thus, these advertisements cannot be called as advertisements for the manufactured goods but are advertisements of the dealer. Undoubtedly, such advertisement indirectly helps the appellant and it is for this reason that they are reimbursing 50% of the expenses. - this is an amount which is paid by the appellant to its d .....

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of the case are that the appellant is engaged in the manufacture of material handling equipment bearing their brand name i.e. INDEF . On an enquiry, it was revealed that the goods manufactured by the appellant were being marketed during the period 1.7.2000 to 31.3.2004 by one M/s. Indef Marketing Services Ltd. (hereinafter referred to as IMSL), who was a 100% subsidiary company of the appellant and later on, the said subsidiary was merged with the appellant. The appellant/IMSL had appointed a ne .....

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negotiates with certain companies like Tata, Yellow Pages, to include the advertisement on behalf of various dealers. Even in respect of such advertisement, 50% of the cost is borne by the appellant and 50% is recovered from the dealers. Revenue's case is that the 50% of the amount reimbursed by the appellant will form part of the transaction value and, therefore, the appellant is required to pay excise duty on the said amount. 2. The learned counsel for the appellant submits that all the AM .....

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ess of the dealer/AMAs. Increase in the appellant's business is consequential to the increase in the business of the dealer/AMA. Thus, it cannot be said that the advertisement is for the goods manufactured by them. Advertisements are for the dealers indicating that they deal in the appellant's goods. The learned counsel's another submission was that the Revenue has raised the demand on the amount disbursed by the appellant. The amount which has been disbursed by the appellant is form .....

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e has to be taken, which can vary from buyer to buyer. In view of the changed situation, the fact that the appellant is selling the goods at the same price to an advertising AMA and to non-advertising AMA, is irrelevant. Further, new Section 4 (3)(d) defines the transaction value and includes any amount relating to advertisement or publicity. The learned AR further submitted the following case laws to support his contention. (i) Maruti Suzuki India Ltd. vs. CCE, Delhi reported in 2011 (274) ELT .....

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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 expenses, storage, outwa .....

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