Mandatory recovery of advertising cost should be included in AV

CA Urvashi Porwal Brief of the Case In the case of M/s Rathi Transpower Pvt. Ltd. Vs. Commissioner of Central Excise, Pune-III, it was held that that unless cost of advertising is recovered from the dealers mandatorily as a condition of dealership, the same cannot be added to the assessable value. Facts of the Case The appellants are manufacturer of excisable goods and were selling the products to various distributors and dealers. The appellants had agreement with some of the dealers and distributors in which they were sharing the cost of advertisement on optional basis. The clauses (6), (8) ...