Central Excise Valuation - Inclusion of After Sale Service and Pre-delivery Inspection Charges – Board Clarifies
CBEC in its circular No. dated 1-7-2002 had clarified that After-sale Service and Pre-delivery Inspection charges were liable to be included in the assessable value under Section 4 of the Central Excise Act 1944.
In Circular No. dated 11.12.2009, Board directed to transfer all the show cause notices issued on the above subject to call book pending the decision of the larger bench of CESTAT in the case of Maruti Udyog Ltd.
The Larger Bench of CESTAT vide its order dated 13.8.2010 - 2010-TIOL-1127-CESTAT-DEL-LB has now held that Pre-delivery Inspection charges and After-sale Service charges collected by the dealers are to be included in the assessable value under Section 4 of the Central Excise Act, 1944.
So the Board wants the cases pending in the call book to be decided keeping in view the law laid down by the larger bench of CESTAT.
The CESTAT Larger Bench delivered its order on 13.08.2010 and we carried it on 31 st August. In less than two months, Board has taken note of the decision and issued directions to the field. Some real fast working this!
CBEC Circular No. 936/26/2010 –CX, Dated: October 27, 2010