Pre-delivery lnspectlon charges (PDl) and free after sales service charges, which are not charged by the manufacturers of vehicles from the dealers, are not to be Included In the transaction value of the vehicles, on which the manufacturer has to pay Central Excise duty.

The Supreme Court has by Its Judgement dated 15-12-2015, hence overruled the CESTAT Larger Bench decision in the case of Maruti Suzuki India Ltd. while agreeing with Bombay High Court dech.lon In the case of Tata Motors Ltd.

The Apex Court inthis regard observed that the activity was a post sale activity undertaken by the dealer and hence the same Is not relevant for the purpose of Central ExciJ.e since the goods have already been marketed. It was noted that services which are provided by the dealers were on their behalf and not on behalf of the assessees.

It was also observed that where the manufacturer himself does after sale services and Incurs expenses, the same Is not deductible from the prfce charged from his buyers and hence likewise, where the manufacturer has sold goods to dealer and the dealer Incurs expenses for after sale service, the same cannot be added back.