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Hyundai Motor India Ltd. Versus CCE & ST LTU Chennai And Vica-Versa

2015 (12) TMI 940 - CESTAT CHENNAI

Valuation - inclusion of the cost of Pre-Delivery Inspection charges and After Sales Services charges, overriding commission paid to dealers on sale to canteen store-departm, Demo Cars, Cost of display kits collected from dealer through debit note, Recovery of incentive trip cost from dealers and profit margin at HMP - Incorrect availment of Cenvat credit on fabricated paint shop structural - Finalization of provisional assessment - Held that:- Revenue has filed the present appeals on the inclus .....

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f the assessee and rejected Revenue's appeals. - PDI/ASS charges are not includible in the transaction value of cars cleared by the assessee. Accordingly, we uphold the Commissioner (Appeals) orders to the extent of non-inclusion of PDI charges/ASS charges. Consequently, we set aside orders passed by Commissioner, LTU confirming the demand on PDI and also set aside the penalties and allow the assessee's appeals. - As regards the inclusion of overriding commission paid to dealers on the sale .....

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e upheld. - As regards non-inclusion of Display Kits and Recovery of Incentive Trips from the dealers, we find that both the transactions are related to post-sale transactions. Therefore, any recovery from the dealer on account of cost of display kits or recovery of expenses for the incentive trips does not form part of the assessable value. - As regards the issue of non-inclusion of Profit Margin to Hyundai Motors Plaza (HMP), these are plazas/retail show rooms called as Hyundai Motors .....

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only a retail sale transaction and the term place of removal is applicable only in a case where the goods are sold in a wholesale transaction. - profit margin paid at the HMP is not includible in the assessable value of cars and LAA order on this account is liable to be upheld. - Assessee sell cars through their dealer network and adopt two different price viz. for normal cars and for demo cars by way of giving special discounts. Adjudicating authority discussed the issue in detail in his f .....

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- [2012 (9) TMI 456 - CESTAT, CHENNAI] wherein the Division Bench of this Tribunal had consistently upheld the demand of differential duty on Demo Cars and rejected the assessee's appeals except waiving the penalties. - we uphold the impugned Order-in-Appeal No.41/2004 dt. 28.7.2004 in respect of value of demo cars and reject the assessee s appeal to that extent. Consequently, we set aside that portion of the orders of LAA in respect of OIA Nos.59/08 dt. 30.3.09; OIA No.64/08 dt. 30.3.09, OIA N .....

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see is eligible for capital goods credit on the structural used in paint complex. The revenue relying on the LB decision in the case of Vandana Global Ltd. (2010 (4) TMI 133 - CESTAT, NEW DELHI (LB) ) and Apex Court decision in the case of Triveni Engineering & Industries Ltd. (2000 (8) TMI 86 - SUPREME COURT OF INDIA) is not relevant in view of the jurisdictional High Court of Madras decision and other High Court orders - Decided partly in favour of assessee. - E/MISC/235/2013 & E/1265/2004, E/ .....

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re department s appeals. All of them are taken up together as the issues are in common. Appeal Nos. E/1265/2004, E/487 to 489/ 2011 and E/473/2012 are appeals filed by M/s. Hyundai Motor India Ltd. (HMIL, for short) and Appeal Nos. E/1312/ 2004, E/398, 399/2009 and E/44 & 45/2010 are appeals filed by the Revenue. 2. In these batch of appeals, there are two MISC petitions filed by assessee and one filed by Revenue. MISC Application No.E/MISC/235/2013 in Appeal E/1265/2004 is filed by assessee .....

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alling under the jurisdiction of LTU, Chennai. Accordingly MA No.E/MISC/234/2013 is allowed. 4. Now, we proceed to take up the appeals. The brief facts of the case are that M/s Hyundai Motors India Ltd (hereinafter referred to as HMIL) are manufacturers of motor vehicles (passenger cars) falling under Chapter Heading 8703 and commenced commercial production from Sept'1998 onwards. The assessees cleared the cars to their dealers as well as through their depot located across the country. Since .....

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d the provisional assessment for the year 1998-99 and 1999-00 vide his first OIO No.88/2003 dt. 12.12.2003. The adjudicating authority had finalized total of "75" issues. Thereafter, the adjudicating authority finalized the provisional assessments periodically covering the period upto September 2011, and issued orders. The main issues which are relevant to these appeals are as under :- 1. Non-inclusion of cost of Pre-Delivery Inspection (PDI) and After Sales Service (ASS) in the assess .....

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2014 (filed by Revenue): 6. In these appeals, the adjudicating authority finalized the provisional assessment and determined the differential duty of ₹ 35,49,57,756/- and also appropriated an amount of ₹ 2,13,08,449/-. Against this order, both Revenue and appellant filed appeals. Assessee filed against the rejection of value of Demo Cars and inclusion of Overriding Commission on clearance of cars to Canteen Stores Department (CSD). Revenue filed appeal against Pre-Delivery Inspection .....

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Revenue filed appeal E/398/09 against OIA No.64/2008 dt. 30.3.2009 and appeal E/399/2009 against OIA No.59/2008 dt. 30.3.2009. These two appeals are filed by Revenue against dropping of demand in the issues referred at para-4 above. E/44/2010 & E/45/2010 (by Revenue) 8. These two appeals are filed by Revenue against OIA No.59/2009 and OIA No.60/2009 both dt. 3.11.2009 respectively on the identical issue as at para-4 above wherein the Commissioner (Appeals) has partly allowed the appeal and t .....

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dt. 4.8.2011 passed by Commissioner, LTU Chennai. Appeal No.E/473/2012 is filed by assessee against OIO No. LTUC/280/2012-C dt. 31.8.2012. All these four appeals are filed by assessee M/s.HMIL against confirmation of demand on Pre-Delivery Inspection Charges for the subsequent periods. 10. Heard both sides. The Ld. Advocate, Shri S. Muthuvenkatraman for HMIL and Ld. A.R, Shri M. Rammohan Rao, JC for Revenue submitted written synopsis and reiterated the same. The submissions of both sides on iss .....

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s particular delivery inspection is already included in the transaction value. He further submits that as per their agreement with various dealers after sales service is carried out by the dealers. Therefore, the entire cost of the pre-delivery inspection is considered as post manufacturing activity and not includible in the assessable value as there is no flow back. PDI is a mandatory requirement where the dealer checks the quality before taking the delivery. Since all the transactions i.e., bo .....

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l Motors India Ltd. Vs CCE b) M/s Mahindra & Mahindra 1998 (103) ELT 606 (T) maintained in 1999 (111) ELT A126 (SC) 11.2 During post 1.7.2000, the issue is covered by the judgment in the following cases. a) Tata Motors Ltd Vs Union of India 2012 (286) ELT 161 (Bom). Para 45 to 49 b) CCE, Chandigarh Vs Punjab Tractors Ltd 2013 TIOL 28 CESTAT, Delhi c) CCE & Cus, Aurangabad Vs Bajaj Auto Ltd 2014 (300) ELT 434 (Tri-Mumbai) d) Toyota Kirloskar Motors Pvt. Ltd Vs CCE, C & ST, Bangalore-L .....

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authorized representative (AR) submitted that the reliance placed on the Bombay High Court judgment in the case of Tata Motors is incorrect for the reason that the Bombay High Court was specific to the facts of that case and the assessee therein and Bombay High Court s decision had been challenged by the Revenue and is pending before the Hon ble Supreme Court. Reference is SLP (Civil) 3501 of 2013 which is converted to a Civil Appeal No.2204 of 2013 and this appeal is connected to Civil Appeal N .....

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taking cognizance of the Bombay High Court judgment as a Civil Appeal on that issue is pending before the Hon ble Supreme Court. Further, it was admitted that the decision is not with reference to any question of law (not being framed thereunder), that the Hon ble High Court has not laid down any ratio to be followed as the said decision was not with reference to any adjudication. ISSUE NO. 2 Non-inclusion of overriding commission paid to dealers on sale to canteen store-department CONTENTION O .....

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irect to the customer but a dealer normally earns a sum of ₹ 40,000/- towards margin. He also submits that this amounts to post sale activity. The cars cleared to CSD are as per transaction value. CONTENTION OF REVENUE 14. The submissions made by M/s HMIL are incorrect. The claims of M/s HMIL are found to be not in consonance with the dealership agreement entered into by them. Dealer shall provide service to Hyundai Cars, supplied by any one dealer. Servicing Dealer alone shall provide ser .....

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ese cars are sold to any buyer as per the transaction value on principal to principal basis. He also submits that after 01.07.2000, each removal should be treated as an independent price. Therefore, the demo cars, though the price is discounted the same is reimbursed to the dealer. The department enhanced the value at par with the normal cars as per the Board s Circular dated 01.04.2003, which is not justified. He also submits that in certain cases, the sale price of the demo cars is higher than .....

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judgments in the case of Ford India Pvt. Ltd Vs CCE, Chennai reported in (i) 2010-TIOL-329-CESTAT-MAD and (ii) 2014 (302) ELT 257 (Tri-Chennai). Further, he submits that the Hon'ble Supreme Court dismissed the civil appeal filed by the assessee in the case of Ford India Pvt. Ltd. Vs Commissioner - 2015 (318) ELT A39 (SC) on account of delay. Ld. AR submits that rejection of transaction value and demand of differential duty on Demo cars by adjudicating authority is to be upheld. ISSUES NO. 4 .....

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and this cannot form part of the transaction value. In an automobile industry, it is the common practice to have uniform display materials and display kits. Similarly, for incentive paid, he submits that the cost of incentive trip of the dealers form part of cash price. The amount collected from the dealer is only for the additional person accompanying the trip, this cannot be added to transaction value of the car. Merely by recovering the additional amount in the form of debit note cannot be c .....

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nclusion of profit margin at HMP: CONTENTION OF HMIL 19. Learned counsel submits that they have set up exclusive showrooms (plazas) of HMP. The same is owned by their dealers. Various schemes are announced depending upon the season, festival and market condition and the discount given to the dealers through credit note relates to the subsidy paid under cash exchange scheme, irrespective of the model and make. This does not form part of the transaction value as it is only a post sale activity, wh .....

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R reiterated the grounds of appeal and placed reliance on the findings given by the adjudicating authority to the effect that discount passed on through credit notes were relating to subsidy paid under Car Exchange Scheme, irrespective of Model and Make and subsidy of interest for the loan given to the customer. ISSUE NO. 7 Incorrect availment of Cenvat credit on fabricated paint shop structural: CONTENTION OF HMIL 21. The Ld. counsel submits that the Adjudicating authority denied the credit on .....

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ed 16.9.2014 passed by this Tribunal Bench in the case of Dalmia Cements (Bharat) Ltd vs CCE following the decision of Karnataka High Court in the case of CCE, Mysore Vs ICL Sugars Ltd reported in 2011 (271) ELT 360(Kar.), CCE Bangalore Vs SLR Steels Ltd. decision referred to supra. c) CCE, Belgaum Vs Hindalco Industries reported in 2012(286) ELT 503 (Kar). d) CCE, Chennai-III Vs Motherson Automotive Technologies Engg. Ltd. - 2008 (227) E.L.T.102 (Tri.-Chennai). e) Bombay High Court judgment in .....

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lly considered the submissions of both sides on all the issues and examined the relevant records. We find that the period involved in the present appeals relates to 1998 to 2011. The appellant-assessee is a manufacturer of passenger cars who opted for provisional assessment and while finalizing the provisional assessment, the adjudicating authority in his series of orders included the costs on various issues as discussed at para-4 of this order and correspondingly confirmed the demands also for .....

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P plaza. For the subsequent periods, we find that the four Revenue appeals filed against 4 LAA orders by and large cover on all the 7 issues referred at para-4 above. Further, we find that the subsequent years 2008-09 and 2009-10, the Commissioner, LTU Chennai adjudicated the case and confirmed the demand including charges of PDI/ASS and also imposed penalty and the assessee preferred appeal. We also find that the period of dispute starts from 1998 to Sept 2011 and covers both pre-amended and po .....

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prior to 1.7.2000 and post-amendment of Section 4. We find that Revenue in their grounds of appeal, mainly contended and relied the Board s circular No.643/34/2002-CX dt. 1.7.2002 and Circular No.681/72/2002-CX dt. 12.12.2002. Further, the jurisdictional Commissioner, LTU also issued SCN and confirmed the demands on PDI in his orders for the period 2008-09, 2009-10. Whereas the Commissioner (Appeals) in his two orders for the earlier period has set aside the DC's orders relating to the deman .....

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on is binding. It is pertinent to state that in the HMIL case this issue started since 1998 onwards and over the years, there were several Tribunal rulings on this issue which led to the LB decision in the case of Maruti Suzuki India. In this regard, we find that subsequent to the Tribunal's LB decision, the Hon ble High Court of Mumbai in the case of Tata Motors Ltd. Vs UOI 2012 (286) ELT 161 (Bom.) held PDI charges not includible and quashed the above two Board's circulars dt. 1.7.2012 .....

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his petition are as under. The petitioners manufacture Indica/Indigo cars at Pimpari works. These cars are sold to customers through a countrywide network of dealers. From August, 2008 onwards the petitioners sold the said cars to their subsidiary company M/s. TML Distribution Company Ltd. (For short M/s. TMLD ) who in turn sell the vehicles to dealers. The petitioners have already disclosed that M/s. TMLD is related person and have paid excise duty not on the basis of petitioners sale price to .....

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of said Act came into effect on 1st July, 2000. The respondents thereafter issued Circular No. 643/34/2002-CX., dated 1st July, 2002. In Clause No. 7 the respondents clarified its stand about the cost of PDI and said services incurred by the dealer during the warranty period. The relevant portion of the Circular is as under : Clarifications on points of doubt under the New Valuation provisions introduced w.e.f. 1-7-2000. Sr. No. Point of doubt Clarification 7 What about the cost of after sales s .....

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ted in respect of Advertisement and publicity charges. That is, in such cases the after sales service charges and PDI and free after sales services charges will be included in the assessable value. 36. It is to be noted that the respondents also issued another Circular Bearing No. 681/72/2002-CX., dated 12th December, 2002 thereby withdrawing earlier Circular No. 355/71/97-CX., dated 19th November, 1997 and subsequent Circular No. 435/1/99-CX., dated 12th January, 1999 and further directed that .....

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er Clause 7 of Circular dated 1st July, 2002 is in excess of the provisions of Section 4(1)(a) and 4(3)(d) of said Act as amended by Section 94 of the Finance Act of 2000. In our view, the answer to this question will decide the issues as between the petitioners and the respondents. In our view, it is not necessary for us to record our views on the correctness of the judgment delivered by the Larger Bench in the case of Maruti Suzuki (supra). Similarly, in our view, it is not necessary to expres .....

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dment, a new term has been introduced by name transaction value and the said term transaction value has been specifically defined in Section 4(3)(d) of the said Act. The present Section 4(1)(a) r/w definition of term transaction value gives more clarity and all doubts as to how the assessable value is to be arrived at are removed. It is also noted that the various items incorporated in the term transaction value as defined in Section 4(3)(d) of said Act as forming part of value of Excisable good .....

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r dated 1st July, 2002 and Circular dated 12th December, 2002. 43. Turning to point in question, it is noticed that the definition of the transaction value in Section 4(3)(d) of the said Act is extensive and ropes in the price of the goods and other amounts charged by the assessee by the reason of sale or in connection with sale. A close reading of Section 4(3)(d) of the said Act would indicate that the term transaction value comprises of price actually paid or payable by the buyer and includes .....

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It is admitted by the petitioners that after a car is sold to a dealer on the terms and conditions entered into mentioned in the dealer s agreement, a dealer is required to carry out Pre Delivery Inspection as well as said services in regard to a car which is sold to a customer. From the record it is seen that a dealer is required to pay an amount to the petitioners towards the cost of the car and a dealer cannot charge more than the amount specified by the petitioners. The difference between t .....

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ncurred by the dealer towards PDI and said services is required to be accepted. From the record it is clear that the case of the petitioners so far as the amount incurred by the dealer towards PDI and said services does not form any of the clauses viz. (a) Any amount charged for (b) Amount charged to make provision for (c) Any amount that the buyer is liable to pay to the assessee (d) Any amount that the buyer is liable to pay on behalf of the assessee. The record indicates that once a car is so .....

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as the one which will be the transaction value. The transaction value will have to be arrived at by taking into consideration the definition of the term transaction value appearing in Section 4(3)(d) of the said Act. The record clearly goes to show that apart from the price which is paid by the dealer to the petitioners, no amount is recovered by the petitioners from the dealer or the customer. As such, the stand of the respondents that the expenses incurred towards PDI as well as said services .....

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enders PDI as well as said services on account of dealership. It is pertinent to note that the respondents have in affidavit in reply dated 29th June, 2012 admitted that the dealer carries out free PDI and after sales services at their end. It is admitted that labour cost towards PDI and said services is borne out of retailing profit. The contention of the respondents that the expenses incurred for PDI and said services must be included in the transaction value and is required to be included in .....

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he customer avails of the benefit of said services. According to the respondents the warranty given by the petitioners is linked with expenses incurred towards PDI and said services and that is how the expenses incurred for PDI and said services become a part of the transaction value. We are not inclined to accept this contention. It is true that the Owner s Manual specifically indicates that if the PDI and said services are not availed of, then the customer would not be able to claim the benefi .....

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the petitioners, it cannot be treated as consideration for sale. It also cannot be treated as a deferred consideration. The respondents while issuing Circular dated 1st July, 2002 have wrongly referred to the Rule 6 of the said Rules and have wrongly linked the expenses incurred for PDI and said services with expenses for advertisement or publicity. It is required to be noted that the provisions of the said Rules will not be applicable to the facts of this case as the transaction between the pe .....

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d. The reference made by learned Senior Counsel Mr. Sridharan to the case of Mr. A.K. Roy and Anr. v. Voltas Ltd. reported in 1977 (1) E.L.T. (J177) (S.C.) is apt. We have perused the said judgment and applying the said judgment to the facts of the present case, the respondents would be able to demand Excise duty on the amount which is charged by the petitioners to the dealer. It is to be noted that as per the record, once the car is sold by the petitioners to the dealer for a particular conside .....

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amount and not the amount which is arrived at after giving the trade discount. Learned Senior Counsel Mr. Sridharan s submission in terms of judgment in the case of Atic Industries Ltd. v. H.H. Dave, Assistant Controller of Central Excise and Ors. reported in 1978 (2) E.L.T. (J444) (S.C.) that the price which is relevant for the purpose of Excise duty was the price when the goods first entered in the stream of trade is required to be accepted. In the present case, when the petitioners sell the .....

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July, 2000, it is apparent that the respondents have brought into existence a deeming provision that is to say the respondents have treated all the manufacturers of cars on one platform and by fiction taken a decision to add the expenses incurred towards PDI and said services in the assessable value. It will have to be mentioned that in all cases where the expenses incurred towards PDI and said services are solely borne by the dealer and the manufacturer like petitioners have nothing to do with .....

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to Section 94 of the Finance Act, 2000, the respondents issued Circular No. F.B-10/1/2000-TRU, dated 12th May, 2000 as also Circular 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 .....

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able value. Paragraph 4 of the Circular dated 12th December, 2002 reads as under. In view of the above facts Board withdraws the Circular No. 355/71/97 CX., dated 19th November, 1997 and subsequent Circular No. 435/1/99 CX., dated 12th January, 1999 referred to above. In other words, PDI (Pre-Delivery Inspection) and free after sales services provided by the dealer of the vehicle, during the warranty period will not be included in the assessable value . 47. This assertion viz. Expenses for the P .....

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t and publicity charges is incorrect. In our view. Clause No. 7 of Circular dated 1st July, 2002 is not in conformity with the provisions of Section 4(1)(a) r/w Section 4(3)(d) of the said Act. 48. The matter can be looked from yet another angle namely; a perusal of the term transaction value would show that servicing is one item, which is included in the definition 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 .....

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penses towards the PDI as well as free after sales services without reference to the manufacturer like petitioners, then, the said expenses incurred by the dealer cannot form a part and parcel of the assessable value. To that extent, Clause 7 of the Circular dated 1st July, 2002 is illegal and void and is contrary to the provisions of Section 4(1)(a) r/w Section 4(3)(d) of the said Act. Similarly, the Circular dated 12th December, 2002 to the extent it confirms Clause 7 of Circular dated 1st Jul .....

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lers margin which includes the PDI charges and after sales service charges, then, the assessable value for determining the Central Excise duty payable by the assessee has to be determined by including the PDI and after sales service charges even if they are not been charged by the assessee to the dealer, which in our opinion is contrary to the provisions of Section 4(3)(d) of the Central Excise Act, 1944 and, hence, liable to be quashed and set aside. Whether the adjudicating authority in the pr .....

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ea for inclusion of PDI and ASS charges is not justified and beyond the scope of law. Further, we find that the co-ordinate Benches of the Tribunal at Mumbai, Delhi and Bangalore on identical issue of PDI pertaining to other Automobile companies followed the Hon'ble High Court order and allowed the appeal in favour of the assessee and rejected Revenue's appeals in the following cases :- (i) Toyota Kirloskar Motors Pvt. Ltd. Vs CCE & ST Bangalore 2014 (306) ELT 504 (Tri.-Bang.) (ii) C .....

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39;s appeal filed against the said Bombay High Court order is still pending before the Hon'ble Supreme Court cannot be a reason that the High Court order should not be followed. The very fact that co-ordinate Benches of the Tribunal in the above decisions have decided the PDI issue by following the ratio of the Hon'ble Bombay High Court order confirms our view that the ratio of High Court decision is applicable. Therefore, the Revenue relying on the LB decision in the case of Maruti Suzu .....

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aside the penalties and allow the assessee's appeals. 26. Issues on (1) Overriding Commission on CSD (2) Non-inclusion of profit margin at HMP (3) Cost of Display Kits and (4) Incentive Trips recovered from the dealers. We find that the adjudicating authority included these charges in determining the transaction value whereas the LAA set aside the order and allowed the assessee s appeals. We have examined the revenue's contentions and perused various impugned orders of LAA from 2003 to 2 .....

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ence personnel directly. Revenue s plea is that it is a commission paid to be included as per Section 4 is not justified. Accordingly, the LAA order on this account is liable to be upheld. 26.2 As regards non-inclusion of Display Kits and Recovery of Incentive Trips from the dealers, we find that both the transactions are related to post-sale transactions. Therefore, any recovery from the dealer on account of cost of display kits or recovery of expenses for the incentive trips does not form part .....

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Tribunal s decisions, we hold that these charges does not form part of the assessable value of cars and has no nexus with the transaction value of cars. Therefore, we do not find any infirmity in the order of the LAA on this issue. The Revenue relying on the Board's circular dt. 1.7.2002 is of no avail. Accordingly, the LAA's orders on these issues are liable to be upheld. 26.3 As regards the issue of non-inclusion of Profit Margin to Hyundai Motors Plaza (HMP), Revenue s main contentio .....

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nd that these plazas are not depot and there is no sale to whole sale dealers. Since in this case, there is no transaction of whole sale transaction to dealers but it is only a retail sale transaction and the term place of removal is applicable only in a case where the goods are sold in a wholesale transaction. Further, Revenue also contended in their grounds that assesses have not passed on the cash discount. On perusal of the findings and records, we find that appellant-assessee have passed on .....

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rs and LAA order on this account is liable to be upheld. 27. Issue on Demo Cars: On this issue, both assessee and Revenue are on appeals before this Tribunal for different periods. Initially, the LAA in his OIA No.41/2004 dt. 28.7.2004 had upheld DC's order dt. 12.12.2003 on rejection of transaction value and redetermination of value on demo cars which led to assessee s appeal. But the LAA in his subsequent OIAs for the period 2003-04, 2004-05, 2005-06, 2006-07 and 2007-08 had set aside the .....

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e payable on demo cars as per the price of normal cars cleared to the dealers. In this regard, we find that the issue of valuation on Demo Cars stands settled by this very Tribunal Bench orders in the case of Ford India Ltd. Vs CCE Chennai reported in 2010-TIOL-329-CESTAT-MAD and 2014 (302) ELT 372 (Tri.-Che.) and also in the case of Royal Enfield Vs CCE Chennai - 2012 (280) ELT 92 (Tri.-Chennai) wherein the Division Bench of this Tribunal had consistently upheld the demand of differential duty .....

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such usage to enhance the marketability of their cars. In these circumstances, the transaction value cannot be accepted and comparable price adopted for other cars (other than demo cars ) has correctly been adopted and differential duty charged thereon. We, therefore, uphold the duty demands together with interest but set aside the penalties imposed on the grounds that penalty is not warranted as the assessees received and paid the duty on the transaction value and the demands are also within th .....

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rity while setting aside the demand came to the conclusion that demo cars are sold at higher price based on few sales whereas the Revenue contended that comparison of price was improper. Since the demo cars are meant for display and publicity, a special discount was given for demo cars which is not the case in the case of normal car. Since the demo car is not at normal sale, but with a condition that it should be used for demonstration purpose/test drive, the price charged for the sale of demo c .....

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e between the normal car and demo car. The same car is sold to the dealer as Demo car for carrying out test drive by the customers which was subsequently sold to ultimate customer on 'as is where is basis'. Therefore, the adjudicating authority has rightly disallowed the discount on the sale of demo car and redetermined the price as per normal car and demanded the differential duty. By respectfully following this Tribunal s decision in the case of Royal Enfield (supra), Ford India Pvt. L .....

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ctive adjudication orders on the issue of valuation of demo cars and allow the Revenue appeals on this count. 29. Issue on Availment of Cenvat credit on the structurals used in fabricated paint complex. As regards the last issue of denial of cenvat credit on the capital goods viz. steel structuals used in the fabricated shops, we find that there is no dispute on the fact that the structurals are used in paint complex which is capital goods used in the manufacture of motor vehicles. We find that .....

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(Bharat) Ltd. Vs CCE Trichy allowed cenvat credit on the capital goods viz. structurals used in the process of manufacture of cement. By respectfully following the High Court s decision (supra), we hold that assessee is eligible for capital goods credit on the structural used in paint complex. The revenue relying on the LB decision in the case of Vandana Global Ltd. (supra) and Apex Court decision in the case of Triveni Engineering & Industries Ltd. (supra) is not relevant in view of the ju .....

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