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2015 (10) TMI 1779 - CESTAT NEW DELHIValuation - Determination of assessable value - Inclusion of cost of additional and secondary inspections - Held that:- sale of “Inserts” was to Railways or to others on behalf of Railways and inspection by RITES was a necessary condition of sale. It was not in the nature of secondary or optional inspection and therefore the Commissioner (Appeals) was not right in holding the inspection charges to be not includible in the assessable value on that ground. As a matter of fact, the said goods could not be sold without the said inspection by RITES and therefore cost of inspection is clearly includible in the assessable value under Section 4 of the Central Excise Act, 1944. The need for an elaborate discussion on this issue is obviated in the wake of the CESTAT judgment in the case of Hindustan Gas & Industries Ltd. (1995 (3) TMI 276 - CEGAT, NEW DELHI) which covers an identical issue in identical circumstances. - This aspect, the absence of optionality and the existence of every buyer insisting upon tests by RITES do not appear to have been present in Hindustan Development Corporation v. C.C.E. In that case, the Tribunal has recorded a finding of the fact that the inspection charges were paid, not by the manufacturer, but incurred by the Railways, the only buyer. The ratio of that judgment, and of the judgment in Shree Pipes [1991 (12) TMI 146 - CEGAT, NEW DELHI ], would not apply to the facts before us - Decided in favour of Revenue.
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