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2015 (10) TMI 1103 - AT - Central ExciseValuation - Determination of assessable value - Invocation of extended period of limitation - whether the charges paid to appellant No.2 by EID Parry India Ltd. or Triveni Engineering Works Ltd. were relating to the engineering, designing and various equipment before manufacturing or these charges are relating to post manufacturing activity - Held that:- Entirely in agreement with the findings of the Commissioner that most of the activities are relating to pre-fabrication, engineering and design stage. It is on the basis of this designing that the appellant is fabricating various equipment, instruments, pipings, insulations etc. The expenditure on such activities would, therefore, form part of the assessable value of the machinery and equipment manufactured by appellant No.1. In fact without these engineering drawings, it was not possible for appellant No.1 to fabricate and manufacture the equipments which they have supplied. Whole plant was fabricated and assembled by appellant No.1 as per the engineering design by appellant No.2. Keeping in view all these facts, we are of the considered view that the amounts paid to appellant No.2 would form part of the assessable value. We also note that these critical facts were not submitted along with the price declarations and, therefore, the extended period of limitation has been correctly invoked. Revenue has added the engineering design charges for the same reasons. It is immaterial that those engineering and design charges were recovered from Triveni Engg. Pvt. Ltd. initially for the said purpose and later on as damages. It was based upon the engineering designs and drawings supplied by appellant No.2 at the initial stage that appellant No.1 fabricated those equipments. For the reasons which are applicable to the supplies made to EID Parry India Ltd., these amounts will also form part of the assessable value. Here again, the extended period of limitation is correctly invoked and the penalty imposed under Section 11AC is correct. - However, penalty under Rule 173Q is reduced. - Decided partly in favour of assessee.
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