Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (8) TMI 896 - AT - Central ExciseValuation - special inspection charges or special testing charges incurred by the appellant on the request and on behalf of the customers - recovery from customer will form part of the assessable value transaction value of the excisable goods under section 4 (post 01.07.2000) of the Central Excise Act, 1944 - HELD THAT:- As per the facts of the present case there is no dispute that before carrying out the third party inspection as per the requirement of the customer. The goods have been fully manufactured. The excise duty paid by the appellant is on the transaction value fixed between the appellant and their customers. It is the customer who wants to get a special testing and inspection done through third party agency. As regard this third party inspection the appellant is not obliged to get this special testing and special inspection done on the product, it is solely on the requirement of the customer who gets this special testing and inspection done on the product. Therefore, the appellant is not otherwise involved in the said third party inspection. It is only for the convenience purpose of the customer, the appellant coordinates such third- party inspection for which the payment for such third-party inspection is though initially paid by the appellant but subsequently and finally incurred by the customer. The third- party inspection charges cannot be included in the assessable value/ transaction value of the excisable final product i.e. transformers manufactured by the appellant. This issue has come up for consideration time and again and in various judgment it was held that in the identical fact the third-party inspection charges for special inspection/ testing on behalf of the customer paid by the manufacturer and recovered from the customer is not includible in the assessable/transaction value of the goods on which such special inspection/ testing was conducted. In the present case, the third party inspection charges are not includible in the assessable/transaction value of the goods. Therefore, the demand on this ground confirmed by the Adjudicating authority and affirmed by the Learned Commissioner (Appeal) is not sustainable. The impugned orders are set aside. Appeals are allowed.
|