TMI Blog2002 (7) TMI 658X X X X Extracts X X X X X X X X Extracts X X X X ..... and other items such as refrigeration equipment, ice cans, condensers etc. They were liable to pay duty only on the compressors, condensers and cooling coils in view of the Notification No. 80/62-CE dated 24-4-1962 exempting the parts of the refrigeration and air conditioning machinery and appliances from duty. They were, however, issued show cause notice dated 16-4-1986 for indulging in the under valuation of the compressors and diverting its price towards the price of the accessories with the intention to evade payment of duty. Since the dispute related to the correct determination of the value of the compressors, a Cost Accountant was appointed with the consent of the appellants, by the Commissioner, for calculation of the cost thereof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that as the dispute related to the correct determination of the value of the compressors being manufactured and cleared by the appellants, a Cost Accountant was appointed to calculate the cost thereof. His appointment was consented by the appellants also and the matter was referred accordingly to the Director of the Studies, ICWAI. Shri Swadesh Mitter, Cost Accountant, submitted his report dated 13-7-1987. 7. The bare perusal of the report of the Cost Accountant shows that he calculated the fair selling price of the compressors and the accessories on the basis of raw material and other manufacturing cost. The details in respect thereof had been given by him in annexures 7/8 (pages 123 124 of the paper book) which are part of his report ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling price could be arrived at by adding 12% post tax return of net-worth and this was fair margin for the appellants to sell their products. Therefore, in our view, the fair selling price as calculated and detailed in annexure 7/8 (page 123 124 of the report) deserves to be taken as assessable value of the compressors and not the price arrived at, after adding the sale price of the accessories and profit derived therefrom. 9. The duty, therefore, had to be charged from the appellants on that basis. However, the argument of the learned counsel that the benefit of the ratio of the law laid down in the case of M/s. Srichakra Tyres, [1999 (108) E.L.T. 361 (Tri.-LB)] also deserves to be given to the appellants as in that case it has been o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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