M/S TRACTORS & FARM EQUIPMENTS LTD. vs COMMR.OF CEN.EXC.BANGALORE — C.A. No. 3768 - 3769/2011

Summary of C.A. No. 003768-003769/2011 The Supreme Court held that pre-delivery inspection (PDI) charges and free after-sales service (ASS) charges incurred by dealers should NOT be included in the assessable value for central excise duty purposes. The Court ruled that since dealers undertake these activities as routine business practice and incur costs from their dealer margins (without reimbursement from manufacturers), such expenses cannot be considered part of the transaction value under Section 4 of the Central Excise Tariff Act. Accordingly, the assessees' appeals were allowed and the Department's appeals dismissed. This case analysis is maintained by casestatus.in based on publicly available court records.