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M/s Bharat Bijlee Ltd. Versus Commissioner of Central Excise, Mumbai

2016 (2) TMI 779 - CESTAT MUMBAI

Assessable value - whether cost of additional testing conducted on the request of the customer of the appellant and documentation charges collected by appellants needs to be included in the assessable value or otherwise? - Held that:- The statement of Deputy General Manager indicates that the tests which are required to be conducted on the Transformers, the statement also records that the appellant conducts all the tests and which are required for their own quality control tests to market the fi .....

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the appellant. - As regards the inclusion of documentation charges, we do find strong force in the contentions raised by the learned Counsel, as the specimen purchase order indicates that the documentation charges which are collected by the appellants during the material period is in respect of additional copies of drawings of the Transformers given to their customers on specific request of the customer. Learned Counsel categorically states that one set of drawing given along with the trans .....

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eal is directed against Order-in-Appeal No. AT/75 & 76/Bel/2007 dated 8.3.2007. 2. Heard both sides and perused the records. 3. The appeal which has been preferred by the appellants is 3 rd round of litigation. Earlier litigation before the Tribunal resulted in remand of the case to the first appellate authority to reconsider the issue of inclusion of cost of additional testing charges conducted at the request of customer and inclusion of cost of documentation charges. The Tribunal had reman .....

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on of the cost of documentation charges he would take us to the specimen purchase order and submits that the drawings which are given with the order are not charged, but additional set of drawings are charged and the value does not get included as these documentation charges are post clearance of the final goods manufactured by the appellant. He would also rely upon the judgement of the Tribunal in the case of Shree Pipes Ltd - 1992 (59) ELT 462 and submit that this judgement has been maintained .....

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duct manufactured by the appellant. 6. We have considered the submissions and perused the records. The issue involved in this case is whether the cost of additional testing conducted on the request of the customer of the appellant and documentation charges collected by appellants needs to be included in the assessable value or otherwise. 7. On perusal of the records it transpires that the first appellate authority has come to conclusion that the cost of additional testing needs to be included in .....

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llant conducts all the tests and which are required for their own quality control tests to market the final products. We do not find anything in the statement which states that the appellant has recovered the cost of this mandated testing from the customers. The appellant has been stating before the lower authorities that that additional testing which is carried out by the appellant is at the behest of their customers; the revenue is unable to bring on record that these tests were not carried ou .....

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The testing in dispute is conducted at the request of the PHED. It is also not disputed that the goods are sold without the testing by the DGS & D to other wholesale dealers as the Assistant Collector gave a categorical finding that the goods are sold to other dealers without subjecting the goods to, the additional testing by the DGS & D. It is also an admitted fact that the customer, namely, PHED in this case, is bearing the expenditure incurred for carrying out the testing by the DGS & .....

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e price which the manufacturer gets at the time and place of removal of goods. The appellant is not charging anything from the customers towards the additional testing conducted at their instance. The clause of the contract provides that the inspection charges shall be borne by the department but the same shall be paid initially by the contractor and shall be claimed in full in the respective bill for 98% payment through bank. Therefore, the manufacturer is not getting anything extra except the .....

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