MARUTI UDYOG LIMITED Vs. CCE

JUDGEMENT

(1.) The appellant M/s. Maruti Udyog Limited (MUL) is a manufacture of automobiles. They sell the automobiles produced by them to dealers at ex -factory prices. They also fix maximum selling price for re -sale of the products in retail to customers. The dealers cannot exceed those maximum selling prices while selling the automobiles to retail buyers. The dealership agreement also specified the commission which the dealer shall receive from customers. The dealership agreement also stipulate the services which a dealer shall render to the buyer. Clause 39 under Article 9 (Servicing) of the dealership agreement states as under : -

(2.) The dispute for consideration in the present appeal is whether the cost of the above Post Delivery Inspection (PDI) and sale service are to form part of the assessable value of the automobiles while discharging Central Excise duty. Impugned order has held that these charges should form part of the assessable value. We read the finding :

(3.) It is clear from the last two paras reproduced above that the issue remains concluded in favour of the assessee by the judgment of the Apex Court but the same is being reopened because of the substitution of the valuation provision (Section 4 of Central Excise Act, 1944) w.e.f. 1.2000 and the clarification issued by the Central Board under its Circular No. 643/34/2000 -CX dated 1.7.2002 and later confirmed under Circular No. 684/72/2002 -CX dated 12.12.2002.