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2020 (1) TMI 668 - AT - Central ExciseValuation - manufacture of DG set - inclusion of pre-delivery inspection charges and after sale service charges in the assessable value - HELD THAT:- The appellant have discharged the excise duty on sale price of DG set. The activity of testing of DG set at the site of the customer and the use of diesel is not part and partial of sale of DG set. It is an independent activity of service therefore the cost of diesel which was recovered by the appellant from the customer as reimbursement for the testing of the DG set is not includable in the transaction value towards the sale of DG set. The activity of filling of Diesel in the DG Set at the site Company is at most can be considered as pre-delivery inspection charges. The Hon’ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, MYSORE VERSUS M/S TVS MOTORS COMPANY LTD. [2015 (12) TMI 874 - SUPREME COURT] held that the charges for pre- delivery inspection is not includable in the Assessable Value. The demand of duty on the cost of diesel is not sustainable - Appeal allowed - decided in favor of appellant.
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