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TMI Blog2010 (12) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... Thousand Four Hundred and Thirty Seven only) is confirmed and penalty of the equal amount is imposed on the firm. Shri Ravi Choudhary filed Appeal against the imposition of penalty of Rs. 2,00,000/-(Rupees Two Lakh only). The Appellants are engaged in the manufacture of tea dryers which are marketed as Tempest Combination Tea Dryers. A Show Cause Notice was issued demanding duty on the ground that the Appellant had dispatched essential component of Tempest Combination Dryer in un-assembled conditions from their factory at Tezpur as well as through their corporate office at Kolkata for re-assembly of the complete dryer at various tea estates and had not paid duty on such activity. The adjudicating authority confirmed the demand on this acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g dryer and in some cases where customer desires they are installing dryers at various tea estates and are receiving installation and commissioning charges. The contention is that the demand in respect of such activities is not sustainable as over-hauling, uprooting, re-installation does not amount to manufacture. Installation and commissioning charges are nothing to do with the manufacturing activity and the value of such charges are not to be added to the assessable value of the dryers cleared form the factory. It is also submitted that the installation and commissioning and over-hauling etc. are undertaken at different places some of them outside the jurisdiction of Commissioner of Central Excise, Shillong & during argument Shri Vijay Ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture of dryers which come into existence in the factory of production the value of such parts is liable to be added to the assessable value of the machine cleared from the factory of production. 6. In respect of the parts which are procured and supplied by the head office at Kolkata which had not gone into the factory at Tezpur and directly sent to the tea estates we find as the same are not cleared from the factory of production at Tezpur as parts of machine therefore are not liable for central excise duty as the same are to be treated as traded item. We also note the fact that main demand is in respect of the Heaters. Revenue is of the view that Heater is essential part of the dryer. We find that in the present case the demand is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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