TMI Blog2016 (3) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... ation and commissioning has to be accepted for the activity carried out by the appellant at site of the customers. This Tribunal in various judgments time and again held that installation/erection/commissioning charges at site of the customer is not includible in the assessable value. SEE Commissioner of C. Ex. Chandigarh Vs. Khosla Machines Pvt. Ltd [2014 (3) TMI 375 - CESTAT NEW DELHI], ) Erricsson India Pvt. Ltd Vs. Commissioner of Central Excise, Jaipur-I [2013 (8) TMI 846 - CESTAT NEW DELHI ] AND Commissioner of Central Excise, Nashik Vs. Kirloskar Oil Engines Ltd [2012 (5) TMI 547 - CESTAT MUMBAI ]. Thus it is very clear that integration and commissioning charges of the machines cannot be included in the transaction/assessable value of the machines. - Decided in favour of assessee - Appeal No. E/3650/05 - A/85816/16/EB - Dated:- 15-2-2016 - MR. RAMESH NAIR, MEMBER (JUDICIAL) AND MR. RAJU, MEMBER (TECHNICAL) For the Petitioner : Shri. M.R. Nadkarni, Advocate For the Respondent : Shri. Sanjay Hasija, Superintendent(A.R.) ORDER PER : RAMESH NAIR This appeal is directed against Order-in- Appeal No. GOA/CEX/SNS/04/2005 dtd. 12/9/2005 passed by the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice of machines and part amount towards integration and commissioning charges but both the amount relates to sale of the goods therefore charges recovered towards installation/commissioning charges is part of the transaction value which is chargeable to excise duty. He placed reliance on following judgments: (a) Commr. of C. Ex., Vapi Vs. Alidhara Textool Engineers Pvt Ltd [2009(14) S.T.R. 305(Tri. Ahmd.)] (b) Commr. of Cus. C.Ex. Aurangabad Vs. Roofit Industries Ltd[2015(319) ELT 221(S.C.)] 5. We have carefully considered the submissions made by both sides. 6. We find that the appellant have raised two invoices one is towards sale of the machines and second for integration and commissioning of the machines supplied to the customers. Integration and commissioning is an independent activity which can be performed either by the appellant or any out side agency, charges recovered towards integration and commissioning charges is not related to the sale of the goods but it is for independent and distinct identified activity. Once the goods are fully manufactured and cleared from the factory activity of erection installation carried out subsequently the charges theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... set aside the impugned order and allow the appeal with consequential relief to the appellant. (c) Commissioner of Central Excise, Nashik Vs. Kirloskar Oil Engines Ltd[2013(293) ELT319(Tri. Mumbai)] 4. We find that the respondent entered into two different contracts, one is for supply of DG sets and the other is for installation/erection and commissioning at the customers site. The respondent was discharging duty on the DG sets at the time of clearance from the factory. As installation/erection and commissioning at customer s site was under the separate contract, therefore we find no infirmity in the impugned order and it cannot be considered towards the assessable value of the DG sets. The appeal is dismissed. (d) Fitwell Engineering Co. Vs. Commissiner of C. Ex. Mumbai-III[2012277)ELT 269(Tri. Mumbai)] 8. In the light of the above decision and the facts of the case involved, we find that the demand of the Department for inclusion of travelling expenses from the factory to the customers site for erection and installation work cannot form the part of the transaction value under Section 4 of Central Excise Act, 1944 and, therefore, excise duty demand on such va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction so as to include the charges collected on value of such activity in the assessable value. 5. We, accordingly, set aside the impugned order and allow the appeals with consequential relief to the appellants. (g) Bharat Heavy Electricals Ltd. Vs. Commissioner of C. Ex. Kanpur[ 2008(230) ELT 187(Tri. Del)] 6.We have carefully considered the submissions and perused the records. The charges recovered by the appellant from their customers are for post clearance activities. Admittedly, it was based on separate contracts with their customers for supervision of erection and commissioning of machinery. In the case cited above by the learned Advocate the issue relating to inclusion of installation and commissioning charges came to be examined. The relevant paras 9, 12, 13 and 14 of the decision of the Honble Supreme Court in Thermax Limited (supra) are reproduced below :- 9. The only question, therefore, with which we are left in these appeals is whether the erection and commissioning charges for which the appellants had separately charged from its customers could be legally included in the assessable value of the goods, namely, the Boiler manufactured and supp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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