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2016 (12) TMI 1458 - AT - Central ExciseValuation - inspection charges - The inspection agency is deputed by the customer/government body. Payment for such inspection are paid by the customer directly to the inspecting agency. However, in few cases the payment of inspection charges was made by the respondent to the inspecting agency on behalf of the customer and subsequently such payment was collected as reimbursement - whether inspection charges to be included in assessable value? Held that: - As per Section 4, any amount which is paid or payable on behalf of the goods will form the transaction value. In the present case, as per the contract, the respondent is not under obligation to undertake the inspection and bear the expenses thereof. As regards the inspection it is a contract between the inspection agency and the customer and the payment transactions invariably made between both of them. Therefore, in few cases, whatever payment was borne by the respondent, for the inspection, the same was collected from the customer as reimbursements which cannot form part of transaction value as the subject amount is not paid or payable on account of sale of goods. Reliance placed in the case of Commissioner of Central Excise, Raipur v. Bhaskar Ispat Pvt. Ltd. [2004 (3) TMI 102 - CESTAT, NEW DELHI], where it was held that cost of additional testing conducted at customer s request and borne by the customer is not includible in the assessable value of the goods. The inspection charges is not includable in the assessable value - appeal dismissed - decided against Revenue.
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