TMI Blog2004 (1) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... free 'after sales service'. The question, therefore, was whether the value of these services was included. As the customer did not pay for them, it was held that this value could not be included. In the present case, the customer is compulsorily paying this amount. Therefore, the ratio of those cases cannot apply. The order of the Commissioner (Appeals) is restored stating that the security deposit in question is on account of installation work and hence should not be included in the assessable value is not factually correct and is seen as an attempt to divert a part of the true price of the goods to "installation charges". - 3124 of 1998 - - - Dated:- 14-1-2004 - S.N. Variava and H.K. Sema, JJ. [Order]. - This appeal is agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondents then filed an Appeal before CEGAT. This has been allowed by the impugned Judgment. CEGAT holds that it is an agreed position that charges towards installation and training are excludable from normal price. On this reasoning CEGAT holds that ₹ 150/-, which was towards installation and training, was excludable. Thereafter, CEGAT takes into account a circular issued by the respondents (which deals with regular service to these engines) and concludes, from that circular, that free service is not being provided by the Respondents to the customers. CEGAT holds that service was being provided by the dealers to the customers. It is held that the Respondents were not undertaking any responsibility in this regard. 2.We have heard th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r repairs on the basis that service was being provided by dealers is entirely erroneous. If there is a provision for free repair during the warranty period then that is something which is being provided by the manufacturer, may be through the dealer, for the benefit of the customer to whom an additional value is provided. Also to be noted that the amount is compulsorily recovered from the customers. The mere fact that it is thereafter passed on to the dealer makes no difference. So far as customer is concerned he is paying for the price of the goods plus this amount. In our view, this case is fully covered by the ratio of this Court in the case of Union of India and Others v. Bombay Tyre International Ltd. and Others reported in [(1984) 1 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketing and selling organisation expenses and after-sales service promote the marketability of the article and enter into its value in the trade. Where the sale in the course of wholesale trade is effected by the assessee through its sales organisation at a place or places outside the factory gate, the expenses incurred by the assessee up to the date of delivery under the aforesaid heads cannot, on the same grounds, be deducted. But the assessee will be entitled to a deduction on account of the cost of transportation of the excisable article from the factory gate to the place or places where it is sold. The cost of transportation will include the cost of insurance on the freight for transportation of the goods from the factory gate to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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