TMI Blog2015 (12) TMI 1151X X X X Extracts X X X X X X X X Extracts X X X X ..... y on revenue neutrality. The Hon’ble Gujarat High Court in the case of CCE, Vadodara-II Vs Indeos ABS Ltd - [2010 (3) TMI 656 - GUJARAT HIGH COURT] dismissed the Revenue’s appeal, holding that since the goods were cleared to sister concern whatever duty payable and availed as credit to their own unit hence entire exercise would be revenue neutrality. It has further been observed that the Revenue’s grievance is acceptable, if the ultimate exercise benefited the Revenue by collection of duty and in that case, no such benefit accrues to exchequer. The said decision was upheld by the Hon’ble Supreme Court as reported in [2011 (3) TMI 1575 - SUPREME COURT]. In the present case, we find that if the Respondents avail CENVAT Credit, demand of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o cleared certain items (such as Printer, PC Workstation, Modem, Cable Line, ISDN Telephone, Terminal Adapter which were bought to the premises of the unit) in the guise of as non-manufactured parts, valued at ₹ 21,19,90,054.00 without payment of Central Excise duty amounting to ₹ 3,43,67.490.00 in the period from 1st April 1998 to 31st May, 2000, under the cover of non-excisable invoices. c) The other bought out items (such as Power Plant, Battery, Inverter, Main Distribution Frame and Digital Distribution Frame were supplied direct to the site of BSNL/MTNL), valued at ₹ 66,25,64,092.00 were integral parts of the equipment manufactured by the assessee, but were cleared without payment of Central Excise duty amounting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 25.1 I find that the Noticee supply Printers, PC Workstation, Modems, Line Testers and ISDN Telephone as bought out items. I find that all these items are in the nature of accessories of equipment manufactured by the Noticee and these items only provide additional features and convenience in the operation of the manufactured equipments, like printers are for printing purposes, PC workstations are for interface of customer with equipment, Modems are for linking between personal computers and Equipments, Line Testers are for testing cables and ISDN Telephones are for speedy transfer of data. In view of the above functions of the bought out items, I find that the items manufactured by Noticee are complete in themselves even without these bough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l in the case of Ericsson India Pvt.Ltd. Others Vs CCE 2004 (169) ELT 76 held that the value of bought out items is not to be included in the value of the manufactured items. Revenue filed an appeal before the Supreme Court against the above judgment. The appeal filed by the Revenue has also been dismissed by Supreme Court vide its order reported at 2005 (179) ELT A 53. The relevant portion of the judgment of the Tribunal is extracted hereunder:- 6. We have perused the records and considered the submissions made by both sides. We do not find the revenues claim sustainable. Duty of Excise is in respect of goods manufactured in India. The appellant manufactured certain telephone equipment in its factory and cleared them on payment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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