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2017 (9) TMI 1364 - CESTAT CHENNAIValuation - includibility - amounts collected as testing charges, service charges, installation charges - Held that: - In the case of testing charges, it is seen that the same is done at the customers' site. The testing is done by Indian Registrar of Shipping as per the statutory obligation and as hired by HPCL. In such cases, testing activity does not form part of manufacturing activity and therefore is not includable in the assessable value - The Tribunal in the case of Goyal M.G. Gases (P) Ltd. Vs. Commissioner [2014 (8) TMI 81 - CESTAT AHMEDABAD] held that cylinder testing charges are not includible in the assessable value. The service charges collected for servicing a pump cleared to the customer - includibility - Held that: - The purchase order was only for supply of DG sets and not for installation. No material required for erection/installation was cleared from their factory as part of the DG sets. There was separate order for installation and erection. Therefore, the above discussed charges cannot be included in assessable value in terms of definition of transaction value under section 4 of Central Excise Act. In Bharat Bijlee Ltd. vs. Commissioner of Central Excise, Mumbai [2016 (2) TMI 779 - CESTAT MUMBAI], where it was held that testing charges borne by customer is not includable in assessable value. Further, charges for erection and installation of DG sets are includable only if such charges are shown in the purchase order. Appeal allowed - decided in favor of appellant.
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