Relief for Suzuki Motors — pre-delivery inspection & after-sale services not part of assessable value

The CESTAT ruled in favour of Suzuki Motors by holding that expenses relating to pre-delivery inspection (PDI) and certain after-sale services do not form part of the assessable value for excise duty. The Tribunal examined whether such charges constitute consideration for manufacture/clearance or are downstream activities/separate services that should not be included in value for excise computation. Applying valuation principles and relevant notifications, the Bench held that bona fide PDI/after-sale activities, when separately invoiced or contractually distinct, cannot be mechanically folded into assessable value. The judgment affects vehicle manufacturers and dealers in valuation disputes: it reduces taxable base where such activities are independent, and clarifies evidentiary standards (separate invoicing, account treatment) required to exclude such sums from excise valuation. Corporates should evaluate invoicing practices, contractual allocation of costs and document commercial substance to support non-inclusion in assessable value.