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2018 (10) TMI 1365 - AT - Central ExciseValuation - inclusion of bought out items cleared along with sizing machine in assessable value - exemption on Warping head stock, a part of the Warping Machine denied - benefit of cum duty. Held that:- Reliance placed in the case of COMMISSIONER OF CENTRAL EXCISE, DELHI VERSUS M/S. FRICK INDIA LTD. & ANOTHER [2007 (9) TMI 6 - SUPREME COURT OF INDIA], where Hon’ble Apex Court directed inclusion of the value of bought out items for the purpose of assessment. Hon’ble Apex Court merely remanded the matter for re-determination of value from the point of value addition and possibility of invocation of Section 14A of Central Excise Act, 1944 which deals with special audits - in the present case, the decision of Hon’ble Apex Court in case of Frick India Ltd. does not help the case of Revenue. Moreover the excise duty is a tax on manufacture of goods. Mere purchase and supply of bought out goods with excisable cannot make them liable to excise. There could have been a possibility of demanding tax on the full machine manufactured at buyers premises, however, the present proceedings cannot succeed on that also on grounds of lack of jurisdiction. Appeal dismissed - decided against Revenue.
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