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2014 (6) TMI 760 - AT - Central ExciseValuation of goods - Third party inspection - whether Pre-Delivery Inspection (PDI) charges recovered by the respondent for conducting test at the instance of the buyer is liable to be included in the assessable value or not - Held that:- circular No. 3/88-CX dated 16-2-88 issued under erstwhile Section 4 of the Act in respect of Pre-delivery Inspection charges has not stood the test of legal scrutiny as Tribunal’s judgment has been otherwise and consequently CBEC withdrew its subsequent circular No. 355/77/97-CX, dated 19-11-97 and 435/I/99-CX dated 12-1-99 vide Circular No. 681/72/2002-CX, dated 12-12-02 in the context of old Section 4 of CEA, 1944. The CBEC has issued a Circular dated 12-5-00 in which in Para 2.2 it has been clarified that the concept of new transaction value under Section 4 has same scope as that of old Section 4 of the Act and Valuation Rules. - third party s inspection charges initially paid by the appellants and subsequently reimbursed by the buyers is not includible in the assessable value of the goods. I, therefore, hold that duty demand of Rs. 25,125/- on inspection charges along with interest is not sustainable - Following decision of M/s. Choksi Tube Co. Ltd. v. CCE Ahmedabad [2002 (11) TMI 521 - CEGAT, NEW DELHI], M/s. Sunrise Structurals & Engg. P. Ltd. v. CCE, Nagpur [2002 (6) TMI 136 - CEGAT, MUMBAI], M/s. Southern Structurals Ltd. v. CCE, Chennai II [2002 (7) TMI 147 - CEGAT, CHENNAI] and CCE, Jaipur II v. M/s. A. Infrastructure Ltd. [2003 (5) TMI 161 - CESTAT, NEW DELHI] - Decided against Revenue.
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