Case Law Details
CA Bimal Jain
SC overruled the CESTAT Larger Bench decision in Maruti Suzuki case and held that pre-delivery inspection charges and after sales service charges are not to be included in assessable value
Facts:
TVS Motors Company Ltd. (the Respondent) was holding Central Excise Registration for the manufacturing and clearing two wheeled motor vehicles. The Respondent sells their goods directly to the customers through sales depots spread throughout the country. The Respondent had requested for provisional assessment to the Department with respect to the depot sales as they could not determine the normal transaction value at the time of clearance at factory gate in respect of such depot clearance. After finalizing the provisional assessment, the Department has passed the Order for inclusion of Pre Delivery Inspection (PDI) charges and Free After Sales service (ASS) charges in the assessable value on the ground of Circular No. 643/34/2002 dated July 1, 2002 wherein it has been clarified that the same has to be included in the assessable value.
Held:
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