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2023 (12) TMI 780 - AT - Central ExciseValuation of goods - inclusion of value of the bought-out-items supplied directly to the customer's place, in the assessable value of the Industrial Furnaces - HELD THAT:- It is observed that the agreement entered by the Appellant in this case was a composite contract for supply and installation and commissioning of the industrial furnace at the customer's premises. The Appellant has duly discharged duty on the supply of components manufactured by them. They have supplied the bought out items directly to the customer's premises where the furnace was erected by utilizing both the bought out items and the goods manufactured by them. The bought out items used in erection of the furnace makes it a part of the immovable property, after erection of the furnace. Hence, no excise duty can be charged on the supply of such bought out items - no excise duty can be charged on the supply of such bought out items. It is observed that after erection of the furnace, the bought-out items are part of the immovable property - the value of bought out items, which are traded goods of the Appellant, are not includable in the assessable value for the purpose of charging central excise duty. Accordingly, the demand confirmed in the impugned order is not sustainable and is set aside. Since the demand itself is not sustainable, the question of demanding interest and imposing penalty does not arise. Appeal allowed.
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