COMMERCIAL TAXES OFFICER Vs. GODREJ G.E.

JUDGEMENT

(1.) Heard the learned Counsel for the parties.

(2.) This revision petition filed by the revenue is directed against the order of the Tax Board dated 26.8.04 whereby the Tax Board rejected the revenue's appeal in favor of the Assessee and held that "optional service charges" at the rate of Rs. 175/- per refrigerator under a separate contract of warranty for providing after sale services in respect of unit of refrigerators sold by the Assessee for a period of four years, would not form part of taxable sale price in the hands of the Respondent Assessee and, therefore, the imposition of the difference tax, interest and penalty was not justified.

(3.) The said impugned order of Tax Board dated 26.8.04 was passed following its earlier detailed order of Tax Board in the case of the same Assessee while deciding appeal No. 1185/1998/Jaipur M/s. Godrej GE Appliance Ltd. v. Commercial Taxes Officer on 28th October, 2002 wherein the Division Bench of Tax Board referring to decisions of Hon'ble Supreme Court in the case of Collector of Central Excise v. Kelvinator of India Ltd., 1988 69 STC 427, in a matter arising under the Central Excise and Salt Act 1944 similarly held that no excise duty could be imposed on the "optional service charges" realised by the Assessee on the sale of refrigerators to the customers under a separate contract of warranty for providing after sale service and repairs to such refrigerators, treating the same as part of assessable value under the central excise law.