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2016 (1) TMI 292

taff trained from the appellant or not. The appellant produced both copies of invoices where charges on account of training are recovered by the appellant and also invoices where it is not so recovered. The charges on account of training the customer's staff is separately shown in the invoices wherever charged and recovered. The arguments of the learned Counsel for the appellant that the activity of training has no nexus with the activity of manufacturing, sale or marketing of the product and the same does not enrich the product has force. The Hon'ble Apex Court in the case of PSI Data Systems Ltd. (1996 (12) TMI 47 - SUPREME COURT OF INDIA) held that the charges for installation of computers and training of customer's personnel to operate .....

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79 of the Schedule to the CETA, 1985. During the course of audit, the audit party raised objections regarding the amounts recovered by the appellant under the heading start up training and commissioning charges from the customers, who purchased their systems. As per the audit, these charges are mentioned in the contracts and shown separately in their invoices are required to be added in the assessable value and the duty should be paid accordingly. On the other hand, the stand of the appellant was that the appellant had bonafide belief that charges recovered on account of training the customer's staff are not includable in the assessable value. In spite of that they calculated and paid the amount of ₹ 1,78,320/- on 22/07/2002 throu .....

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not enrich the value of their products. He further submitted that the Board clarified the concept of transaction value vide Circular cited supra clarifying that any charges in connection with the manufacture, marketing, selling of excisable goods shall form part of the assessable value. In support of his contention, the learned Counsel cited the following judgements: a) PSI Data Systems Ltd., Vs. CCE-1997 (89) ELT 3 (SC) b) Thermax Ltd., vs. CCE - 1998 (99) ELT 481 (SC) c) Brahmos Aerospace Pvt. Ltd. vs. CCE, Hyderabad - 2014 (307) ELT 795 (Tri-Bang) d) Rockwell Automation India Pvt. Ltd., vs. CCE - Ghaziabad - 2008 (228)ELT 127 (Tri-Del) e) Minicomp Ltd., Vs. CCE Aurangabad - 2003 (157) ELT 34 (Tri-Mumbai) f) CCE Bangalore vs. Kirloskar El .....

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f training the customer's staff is separately shown in the invoices wherever charged and recovered. The arguments of the learned Counsel for the appellant that the activity of training has no nexus with the activity of manufacturing, sale or marketing of the product and the same does not enrich the product has force. The Hon'ble Apex Court in the case of PSI Data Systems Ltd. (supra) held that the charges for installation of computers and training of customer's personnel to operate and maintain it was not includable in the assessable value of the computers. Similarly, in the case of Kirloskar Electric Co Ltd., National Radio & Electronics Co. Ltd., Minicomp Ltd. (supra), it has been held that the amounts collected for traini .....

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