1994 (10) TMI 154

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..... e with reference to include the assessable value of the expenditure incurred by the respondents in regard to (i) Staff Colony expenditure, (ii) expenditure incurred on Research & Development and (iii) expenditure relating to abnormal wastage. While the learned DR commenced his submissions with reference to the includibility of the expenditure on staff colony expenses, Shri V. Sridharan, the learned Counsel for the respondents submitted that the respondents are not contesting this plea appealed against. Therefore, the plea of the learned DR for includibility of this expenditure is upheld. 2. In regard to the wastage, the learned DR contended that the Collector (Appeals) has worked out 50% without giving any basis as to how he arrived a .....

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..... curred R & D expenditure, the reasoning of the learned Collector (Appeals) in the impugned order has to be accepted because even the original authority, namely, the Assistant Collector of Central Excise in his order dated 9-8-1993 has held that the respondents have accepted 50% of the total advances as includible to form part of manufacture. This part of the finding was not appealed against or made a grievance in the appeal. The learned Counsel further submitted that when the department is not disputing the fact that the respondents are not manufacturing DCGL elevators any expenditure incurred towards R & D in respect of the same would not become includible as cost of production of other elevators namely ACVV. 5. We have considered th .....

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..... art of manufacturing cost of parts & components of lift." Taking note of the facts that admittedly the respondents are not manufacturing DCGL type of elevators and for the reasons given in the impugned order by the Collector (Appeals), extracted above, we are inclined to think that the reasons are acceptable. In this view of the matter, we uphold the finding of the impugned order in terms of the impugned order. 7A. In the result, the appeal stands disposed of as indicated above. The appeal is remanded for reconsideration of the issue as indicated above. 8. The appeal is thus partly allowed in favour of the department and partly remanded. 9. The cross objections also stand disposed of in the above terms.
Case laws, Decisions, Ju .....

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