9911796707
TMI Blog1992 (2) TMI 233X X X X Extracts X X X X X X X X Extracts X X X X ..... Asbestos Cement Pipes and Tubes and also Asbestos Cement Couplings falling under T.I. 23-C. In addition to the Asbestos Cement Pipes and Couplings, they also supply rubber 'O' rings (bought out items) which are fitted in the couplings. The contract price does not mention the supply of 'O' rings separately nor it is indicative of the value of the 'O' rings in the contract price. The asbestos cement pipes are used for flowing of water from one place to another while couplings are used to join two pipes as leak proof, so that water does not leak. The asbestos cement couplings have grooves in which 'O' rings are fitted. These 'O' rings work as washers to control leakage of water. The respondents filed price lists in Part II alongwith the contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of a finished product shall form part of the assessable value. It is also contended that the contention of the respondents that 'O' rings are not essential parts of a coupling is incorrect, and since it is an essential part of the coupling the value should be included in the assessable value of the finished product. They have also submitted that the price lists filed by the respondents indicated their claim for deduction of the value of 'O' rings from the assessable value of the pipes and other asbestos products. 5. Shri Asthana appearing for the respondents submitted that the couplings are not essential parts of couplings and the 'O' rings are furnished to the customers at their request as it is an optional item. He also subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r decision relied upon by Shri Asthana is that of Koran Business Systems Ltd. v. U.O.I. [1991 (51) E.L.T. 212] wherein it was held that while determining the assessable value of machines, it is not permissible to take into consideration accessories like plates and black shields. It was also held that plates and black shields are required for working of the machine but that by no stretch of imagination can lead to the conclusion that plates and black shields are part and parcel of the machine. In Universal Luggage Manufacturing Co. Ltd. v. C.C.E. - [1990 (45) E.L.T. 508] it was held that wheel kits for suitcases are only accessories and since they are optional accessories, their value cannot be added to the assessable value of the suitcase. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
