TMI Blog2007 (4) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... favor of appellant. - Appeal No. E/3388/04, E/1291 and 1292/05-Mum - Order No. A/286-288/07/WZB/C-I/EB - Dated:- 24-4-2007 - Ms. Jyoti Balasundaram, Vice President and K.K. Agarwal, Member Technical V. Sridharan, Adv., 2 and 3 Prakash Shah for the Appellant Dr. Y.D. Banga, SDR for the Respondent Per : Shri T. Anjaneyulu, Member (J) : These are three appeals, one filed by M/s Kinetic Engineering Ltd. and other filed by M/s Raymond Ltd. and Shri Vasant Naag, General Manager of M/s Raymond Ltd. Since the issue involved is common in all the appeals, the same are being decided through a common order. 2. The issue involved in these appeals is whether the cost of advertisement/publicity expenses borne by the dealers and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - and ₹ 1,64,86,077/- against M/s Raymond Ltd. along with penalty of equivalent amount and another penalty of ₹ 10 lakhs was imposed on Shri Vasant Naag, General Manager, Indirect taxation, of M/s Raymond. 3. Learned Advocate for the appellants submits that the demand has been confirmed only for the period from 01.07.2000 when new Section 4 was introduced as it was considered that the scope of the new Section 4 is much wider than the earlier Section 4 and therefore all the amount recovered from the customer would form part of the assessable value of the goods sold. Reference was invited to new Section 4(1) which reads as under :- a. in a case where the goods are sold by the assessee, for delivery at the time and place of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsideration in the case of Philips India Ltd., wherein also advertisement and free after sales service during the guarantee period was provided by dealers to the product of Philips under an agreement and manufacturer and dealers were sharing advertisement expenses on 50% each basis and it was held that the advertisements benefit both and was for the mutual benefit of the manufacturer and the dealer and therefore adjustment of advertisement expenses cannot be added to the assessable value. It was submitted that though the decision was in respect of the old Section 4, the same was still applicable as the expenses shared by the dealers was for his own profit and therefore cannot be added to the expenses of the manufacturer. The matter has com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. We have considered the submission. We find that this issue has been decided by the Tribunal in the case of Maruti Udyog and Mahindra and Mahindra (cited supra) wherein it has been held that advertisement cost and pre-delivery inspection and after sales service charges which are sharable between the manufacturer and the dealer cannot be included in the assessable value even after 01.04.20071 as the advertisement promoted the sale of the dealers also and therefore his expenses cannot be included in the expenses of the manufacturer. Following these two decisions we set aside the orders of the Commissioner(Appeals) in the case of Kinetic Engineering and Commissioner's order in the case of Raymond Ltd. and allow the three appeals. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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