JUDGMENT
Gowri Shankar, Member (T)
1. Hercules Hoists Ltd. sold some of the hoists manufactured by it to Batliboi & Co. Ltd. In terms of the agreement between these parties, Batliboi & Co. Ltd. was to incur half of the expenses that the manufacturer spent in advertising the goods. The question for consideration in this appeal is whether that part of the expenses incurred by Batliboi & Co. Ltd. is to be included in the assessable value of the hoists. In the order impugned in the appeal, the Commissioner (Appeals) has confirmed the finding of the Assistant Collector that these charges are to be included.
2. The ratio of the judgment of the Supreme Court in Philips India Ltd. v. CCE 1997 (91) ELT 540 is that the expenses incurred by a dealer of excisable goods benefited both him and the manufacturer equally and should not form part of the assessable value of those goods. The ratio is squarely applicable to the facts of this case.
3. The appeal is accordingly allowed and the impugned order set aside, with consequential relief.
