TMI Blog2016 (6) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... stomer to buy the said item namely dry charged batteries without the electrolytes; and the customer(s) can buy electrolytes, if choose to do so, separately. We find on record that there has not been any cenvat credit taken for the electrolytes supplied separately and the electrolyte has been supplied by the respondent in separate packing as a bought out item only. Items namely “electrolytes” and “micro porous vent plug with float” are not to be treated as parts/components of dry charged batteries, covered under Chapter 8507.00 of Central Excise Tariff, for the purpose of computation of assessable value for payment of duty of central excise. - No demand - Decided against the revenue. - E/613/2003-DB - Final Order No. 20436/ 2016 - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which a battery cannot function. Item Electrolyte is an essential part of the battery without which the batteries cannot be charged and will be unfit for use and in respect of Micro porous vent with float the same is specially designed for the electric accumulators to vent out the gases generated during charing or discharging of batteries and present busting due to build up of internal pressure. Therefore the assessee ought to have included the value of the said accessories in the assessable value of the dry batteries. 3. The respondent represented by the learned Advocate, Shri M. Narayana has mainly argued as follows: The batteries can be classified as 1. Charged and moist batteries 2. Dry uncharged batteries 3. Dry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and accordingly dropped the entire demand issued by the show-cause notice dated 22.03.2002. 5.1. From the literature especially the technical article written by P.G. Balakrishnan it is clear that the dry charged batteries can be supplied separately without any electrolytes. In the subject case it is on record that the supplies of the batteries without electrolyte have been made as per the orders of their customer, who is Tata BP Solar India Limited. 5.2. HSN notes for the Chapter Heading 8507 clearly make a mention that electric accumulators (storage batteries) remain classified under Chapter 8507 even if they are presented without the electrolyte. This proves that the subject item could be manufactured without the electrol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icro porous vent plug with float . Impugned order has given justifiable reasons that why the value of these two items is not includible in the assessable value of the subject goods namely dry charged batteries classified under Chapter Heading 8507.00. 5.5. On this subject matter, the respondent has referred to the CESTAT, Delhis decision in the case of Collector of Central Excise, Pune Vs. Kishor Pumps Pvt. Ltd. (supra) wherein it was held that bought out electric motor supplied along with P.D. pumps and agitators at the option of buyer cannot be considered as a component/P.D. pumps/agitators and their value cannot be included in the assessable value of the main commodity namely P.D pumps and agitators. We find that CESTAT, Madras in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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