TMI Blog2008 (5) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... cision dated January 25, 2002 rendered by the Customs Excise and Gold (Control) Appellate Tribunal, South Zonal Bench at Banglore, in Appeal No. E/744/95 whereby the order dated September 8, 1995 passed by the Commissioner of Central Excise, Belgaum, confirming the demand of duty of Rs.7,41,750/- and imposing penalty of Rs.75,000/- on the additional amount of consideration of Rs.43,00,000/- received by the respondent for the preparation of designs, drawings, patterns, jigs, etc. is set aside. 2. The respondent, a company incorporated under the provisions of the Companies Act, 1956 was manufacturing machine tools, their accessories, high grade castings, pollution control equipments and other incidental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Customs Excise Gold (Control) Appellate Tribunal, South Zonal Bench at Bangalore (''the Tribunal" for short). The Tribunal allowed the appeal by Judgment dated January 25, 2002 giving rise to the instant appeal. 5. This Court has heard the learned counsel for the parties at length and in great detail. This Court has also considered the documents forming part of the instant appeal. 6. The question which arises for consideration in the instant appeal is whether the amount of Rs.43 lakhs received by the respondent towards charges for designs, drawings, tooling, jigs and fixtures etc. as per t he agreement dated May 10, 1991 could have been loaded on the value of the machine made and delivered subsequently as per the sep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extracted above makes it very clear that the agreement was not merely for the preparation of design and drawings, but a total contract for design, drawing, manufacture of prototype, supply of the machines and payment of excise duty, etc. The contract could not have been read in isolation in parts, that is to say that the respondent had separately agreed to supply designs drawings etc. and also separately agreed to supply machinery. 9. It is true that the charges for drawings, designs etc. have to be added to the assessable value of the machines manufactured, based on use of such drawings, designs, jigs, fixtures, tooling etc. However, before adding the value of the drawings etc, it has to be established that the consideration had a ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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