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2023 (8) TMI 8 - AT - Central ExciseValuation - inclusion of value of bought out items in the assessable value (weigh bridge, as ‘bought out’) - scope of transaction value - HELD THAT:- Appellant purchased items such as personal Computer, Printer, UPS, Stabilizer and Air-Conditioner' and supplied along with their finished goods namely ' Pitless Electronics In- Motion weigh Bridge'. A perusal of the functions performed by these goods, which were supplied along with the said finished products, reveal that they were not essential parts, as they were not required for performance of the main function ie, weighment of goods/railway wagons. The Weigh Bridge System supplied by the Appellant can run smoothly without these items, as controller ‘DISOMAT-C’ is sufficient for taking weighment of the system. Transaction value” as defined under Section 4(3) (d) of the Central Excise Act, 1944, means that the price actually paid or payable for the goods when sold and includes in addition to the amount charged as price any amount that the buyer is liable to pay, to or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or any time thereafter - the value of the bought out items are not payable or paid to the manufacturers of the weigh bridge. The prices of these goods have been paid to the dealers of those goods who sold it to the Appellant. Further the Appellant has not taken Cenvat Credit of the duty paid on these bought out items. Hence, the value of bought out items will not be part of the Transaction Value, in this case. In the instant case, it is found that the bought out items have not been attached with the weigh bridge. Even after installation of the weighbridge, they perform their functions independently. Thus these items are not essential part of the weigh bridge and the value of these bought out items are not includable in the assessable value. In the case of COMMMISSIONER OF CENTRAL EXCISE, TRICHY VERSUS M/S. NEYCER INDIA LTD. [2015 (5) TMI 494 - SC ORDER] it has been held that assessee supplied the same to those buyers only who asked for that and in such a situation the assessee buys the aforesaid components from the market and supply to the buyers at their option. In these circumstances, the Tribunal in NEYCER INDIA LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, TRICHY [2005 (3) TMI 367 - CESTAT, CHENNAI] has rightly declined to add the value of the aforesaid components which are not the part of flushing cistern manufactured by the assessee. The demands made in the impugned order are not sustainable. Since the duty itself is not liable to be paid, the question of demanding interest and imposing penalty does not arise - Appeal allowed.
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