Case Law Details
Urvashi Porwal
Brief of the case
In the case of Commissioner of Central Excise, Mysore Versus M/s. TVS Motors Company Ltd, It Was Held by Supreme Court That PDI charges and free ASS charges after the sale of vehicles should not be included in the assessable value for the purpose of calculation of excise duty.
Brief facts
M/s. TVS Motors Company Ltd. (hereinafter referred to as the ‘assessee’) is the respondent. The assessee is holding central excise registration for the manufacturing and clearing two wheeled motor vehicles classified under Chapter Sub-Heading 8711.20 and 8711.10 of the Central Excise Tariff Act, 1985. The assessee sells their goods directly to the customers through sales depots spread throughout the country. The assessee had requested for provisional assessment 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. The provisional assessment was finalized for the period from 01.07.2001 to 31.03.2002 and 01.04.2002 to 31.03.2003 vide Order-in-Original No. 47 of 2004 dated 19.07.2004 and 44/2005 dated 04.05.2005. The above said Order-in-Original’s included PDI charges and free ASS charges in the assessable value. The reason for doing so by the Adjudicating Authority was Circular No. 643/34/2002 dated 01.07.2002 wherein it has clarified the same to be included in the assessable value.
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