Collector Of Central Excise, ... vs Eicher Tractors Ltd.

The Supreme Court held that the amount of Rs. 300/- charged by the respondents for diesel engines, which was claimed to be a security deposit for installation and training, must be included in the assessable value as it was found to be an after-sales service charge. The Court emphasized that since both lower authorities established there was no actual installation, the charges could not be excluded from the assessable value. Furthermore, the Court clarified that charges for repairs during the warranty period are distinct from service charges, and thus, CEGAT's exclusion of these charges was erroneous.