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2016 (6) TMI 917 - AT - Central ExciseValuation - manufacture and sale of Dry Charged Batteries - inclusion of products viz., electrolyte and micro porous vent plug with float supplied as bought out items - whetehr electrolyte can be treated as a part of the battery - Held that:- HSN notes for the Chapter Heading 8507 clearly make a mention that electric accumulators (storage batteries) remain classified under Chapter 8507 even if they are presented without the electrolyte. This proves that the subject item could be manufactured without the electrolytes and could be bought without electrolytes. In other words it is a choice of the customer to buy the said item namely dry charged batteries without the electrolytes; and the customer(s) can buy electrolytes, if choose to do so, separately. We find on record that there has not been any cenvat credit taken for the electrolytes supplied separately and the electrolyte has been supplied by the respondent in separate packing as a bought out item only. Items namely “electrolytes” and “micro porous vent plug with float” are not to be treated as parts/components of dry charged batteries, covered under Chapter 8507.00 of Central Excise Tariff, for the purpose of computation of assessable value for payment of duty of central excise. - No demand - Decided against the revenue.
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