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2018 (7) TMI 1712 - CESTAT AHMEDABADValuation - transmission towers - inclusion of value of nuts and bolts in assessable value - case of the department is that the nuts and bolts are parts of transmission tower - appellant submits that the nuts and bolts are not used in the manufacture of their final product i.e. transmission towers. Nuts and bolts are bought out items and the same is traded by supplying the same directly from the supplier’s to the site of the buyer of transmission towers. Held that:- It is not in dispute that the nuts and bolts are bought out items and the same is not part of the manufacturing activity of the appellant. The said nuts and bolts were not brought into factory of the appellant. Hence the same is not taken part in the activity of manufacturing of transmission towers. The said nuts and bolts were supplied directly from supplier to site of the buyers. The goods manufactured and cleared by the appellant is the transmission towers in unassembled form which is only goods subject to assessment and the appellant have correctly discharged the duty on the said goods. The transaction of the nuts and bolts is clearly a trading activity on which neither the duty can be demanded nor the value thereof can be included in the value of transmission towers. The very same issue has been considered time and again by various forums such as this Tribunal, High Court and Supreme Court and consistently the bought out items supplied directly at site for erection installation commissioning of excisable manufactured goods the value of bought out items neither can be included in the value of such machine or even leviable to duty independently. Reliance was placed in the case of COLLECTOR OF CENTRAL EXCISE, BARODA VERSUS DODSAL PRIVATE LTD., BARODA [1986 (1) TMI 259 - CEGAT, NEW DELHI], where it was held that the activity would not come under the purview of a manufacture and ‘the transmission towers which were erected at the site from the structural material would be permanent structures and would not admit of the definition or description of the goods. The nuts and bolts supplied directly to the supply of the supplier being out of the part of manufacturing of appellant is not liable for duty - Since the matter is decided on merit, there is no need to address the issue on limitation. Appeal allowed - decided in favor of appellant.
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