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TMI Blog2007 (4) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... The issue involved in these appeals is whether the cost of advertisement/publicity expenses borne by the dealers and franchisee shops of M/s Kinetic and M/s Raymond on account of advertisement through press and other means and supply of calendar etc. are required to be included in the assessable value under section 4 of the Central Excise Act, 1944 after 2000 when the valuation under Central Excise is based on the transaction value instead of the normal price as was prevalent prior to 2000 when Section 4 was amended to provide for transaction value. The demands have been raised against both the companies on the basis of CBEC Circular no. 643/34/2002 dated 01.07.2002 which says that advertisement and publicity charge borne by the dealers/bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- "a. in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of the goods are not related and the price is the sold consideration for the sale, be the transaction value; b. in any other case, including the case where the goods are not sold, be the value determined in such manner as may be prescribed. (2) The provisions of this section shall not apply in respect of any excisable goods for which a tariff value has been fixed under sub-section (2) of Section 3." 4. Transaction value is defined under Section 4(1)(d) which reads as under :- "(d) "transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n profit and therefore cannot be added to the expenses of the manufacturer. The matter has come for consideration before the Tribunal in the case of Maruti Udyog Ltd. vs. CCE, Delhi, 2004 (170) ELT 245, where even under new Section 4, it was held that pre-delivery inspection and after sales service charges, received by dealers from buyers of cars, which is done in consequence of the warranty service promised by the manufacturer will not be includible in the assessable value of the cars even for the period after 01.07.2000. In this case the Tribunal has considered the Circular issued by the Board in 2002 which has been relied upon by the Commissioner and rejected the same as it was not found in conformity with Section 4 and the definition of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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