- (1.) The question of law which arises for consideration in all these appeals is identical, which is the following one; Whether the pre-delivery inspection charges (for short 'PDI') and after sales service charges (for short 'ASS') are to be included in the assessable value?
(2.) For the sake of convenience, however, we take note of the facts from the record of Civil Appeal Nos. 5155-5156/2007 wherein M/s. TVS Motors Company Ltd. (hereinafter referred to as the 'assessee') is the respondent. The assessee is holding central excise registration for the manufacturing and clearing two wheeled motor vehicles classified under Chapter Sub-Heading 8711.20 and 8711.10 of the Central Excise Tariff Act, 1985. The assessee sells their goods directly to the customers through sales depots spread throughout the country. The assessee had requested for provisional assessment with respect to the depot sales as they could not determine the normal transaction value at the time of clearance at factory gate in respect of such depot clearance. The provisional assessment was finalized for the period from 01.07.2001 to 31.03.2002 and 01.04.2002 to 31.03.2003 vide Order-in-Original No. 47 of 2004 dated 19.07.2004 and 44/2005 dated 04.05.2005. The above said Order-in-Original's included PDI charges and free ASS charges in the assessable value. The reason for doing so by the Adjudicating Authority was Circular No. 643/34/2002 dated 01.07.2002 wherein it has clarified the same to be included in the assessable value. The assessee filed an appeal against the above cited orders before the Commissioner (Appeals), Mangalore, who, vide Order-in-Appeal No. 227/2005 CE dated 24.10.2005, disallowed inclusion of PDI charges and free ASS charges in the assessable value by relying on the Custom Excise and Service Tax Appellate Tribunal (CESTAT) decision in the case of Maruti Udyog Limited v. CCE, Delhi-III, 2004 170 ELT 245 and remanded the case to the Adjudicating Authority to re-examine the disputed issues in the light of settled legal positions and finalise the provisional assessments accordingly. Aggrieved by the above Order-in-Appeal, the Department filed an appeal before the CESTAT, Bangalore. The Tribunal, vide final Order Nos. 1860 & 1861/2006 dated 03.11.2006 has rejected Department's appeal and upheld the Commissioner (Appeals), Order-in-Appeal, holding that the abatement in respect of PDI charges and ASS charges is correct, by relying upon the Tribunal's decision in the case of Maruti Udyog Limited and remanded the case to the original Authority for re-computation. We may note that the Tribunal's decision in the case of Maruti Udyog Limited was questioned by the Department before this Court vide C.A. No. D 7670 of 2006, which was rejected on the ground of delay. It is under the aforesaid circumstances the Tribunal's order is challenged by way of instant appeals filed by the Department.
(3.) We may point out, at this stage, that some other Bench(es) of the Tribunal had taken contrary view and the matter was referred to the Larger Bench which decided the issue in the case of Maruti Suzuki India Ltd. v. CCE, New Delhi, 2010 257 ELT 226. It has held that the definition of 'transaction value' would cover the free PDI as well as ASS charges. It is in this backdrop that three appeals are filed by the assessees questioning the validity of the orders passed by the Bench taking the aforesaid view.;