GST India Solution

936/26/2010-CX, Dated: 27/10/2010

Circular No. 936/26/2010 –CX

F.No. 6/4/2009-DS (CX.1 & 4)/Pt.

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Custom

New Delhi, the 27th October, 2010

To,

Directors General (All)

Chief Commissioners of Central Excise including LTU (All)

Commissioners of Central Excise (All)

Sir/Madam

Subject: Inclusion of After Sale Service and Pre-delivery Inspection Charges in the assessable value.

Attention is invited to point No. 7 of Board’s circular No. 643/34/2002-CX dated 1-7-2002 and to circular No. 909/29/09-CX dated 11.12.2009 on the above subject.

2. Board vide its earlier circular No. 643/34/2002-CX 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. Further vide circular No. 909/29/09-CX dated 11.12.2009, it was 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.

3. The larger bench of CESTAT vide its order dated 13.8.2010 in appeal No. 1958 of 2008 in the aforesaid case, 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.

4. In view of the aforesaid decision of the larger bench, the cases pending in the call book may be decided keeping in view the law laid down by the larger bench of CESTAT.

5. Receipt of this circular may be acknowledged

6. Hindi version would follow.

Yours faithfully

Madan Mohan

Under Secretary (CX.1)

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GST India Solution is an effort of firm of professionals who welcome implementation of GST. This is an interactiveplatformthat aspires to disseminate right knowledge to professionals, practitioners and public at large. This platform has beenfloatedbya firm of Chartered Accountants relentlessly working in field of direct and indirect taxes since early 1985.

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Goods & Service Tax

Our core competence is statutory compliance, advisory, corporate tax planning and appellate matters of direct and indirect taxesandcorporate training sessions on GST.

The senior partner of the firm has to his credit several professional publications viz., Delhi Sales Tax Right to Use Goods Act, Delhi VAT, Maharashtra VAT, West Bengal VAT, Haryana VAT published by Taxmann. Madhya Pradesh VAT and Chhattisgarh VAT were published by Suvidha Law House, Bhopal. He has also addressed seminars on indirect taxes organized by professional bodies like ICAI, IMA, NIFM etc. and has also contributed articles on subjects of pro. . . . .