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2017 (12) TMI 283 - AT - Central ExciseValuation - inclusion of cost of bought out items - Freight - place of removal - case of Revenue is that the entire said receipt at the customers premises constitute the powder coating plant and since the customers premises is the place of removal, value of all bought out items is to be included for the purpose of assessment - Held that: - it is not in dispute that the Revenue is seeking to include the cost of bought out items supplied directly to site for the purpose of charging Central Excise duty. It is not in dispute that no manufacturing activity in respect of such items has been done by the appellant - The liability to Central Excise duty arises only when there is a manufacturing activity undertaken and in the absence of manufacturing activity the liability of Central Excise does not arise. Similar issue decided in the case of COMMISSIONER OF CENTRAL EXCISE, PONDICHERRY Versus ACER INDIA LTD. [2004 (9) TMI 106 - SUPREME COURT OF INDIA], where it was held that Excise duty would be leviable only on the goods which answer the definition of excisable goods and satisfy the requirement of Section 3. A machinery provision contained in Section 4 and that too the explanation contained therein by way of definition of transaction value can neither override the charging provision nor by reason thereof a goods which is not excisable would become an excisable one only because one is fitted into the other, unless the context otherwise requires. Appeal allowed - decided in favor of appellant.
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