HINDUSTAN MOTORS LTD. Vs. UNION OF INDIA (UOI)

JUDGEMENT

(1.) THOUGH a written counter and reply have not been filed in view of a purely legal issue arising for decision in this petition the learned counsel for the parties are heard finally with their consent. The petition is disposed of in terms of the following order : - Rule D.B.

(2.) THE petitioner is aggrieved by Circular No. 355/71/97 -CX, issued by Central Board of Excise and Customs whereby the adjudicating authorities have been directed to see that the value of the provision for rendering PDI and three after -sales services by dealers being on behalf of manufacturer, was includable in assessable value of goods. This circular refers to decided cases of Bombay Tyre International, Philips India Ltd. and M.R.F. cases.

(3.) THE CEGAT has delivered a judgment in M/s. Mahindra and Mahindra Ltd. (Annexure -H) on 13 -2 -1998 wherein the CEGAT has taken into consideration the entire case law available on the point and also referred to the three decisions set out in the impugned circular. The CEGAT has opined that part of dealers' margin referable to cost of free after -sales -services cannot be included in the assessable value.