TMI Blog2016 (6) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... on of such designing and engineering charges in working out the assessable value of the goods manufactured by the appellants. - Demand is not maintainable As regards the consideration received for storage, handling, erection, commissioning and P G test of plant and equipment charges, Commissioner (Appeals) has set aside the demand by observing that the same are the activities relatable to erection of plant and machinery at the site of M/s. SAIL. The erection and installation is done out of goods supplied by the assessee as well as by others and which ultimately results into coming into existence of immovable rail mill. Demand cannot sustain - Decided against the revenue. - Excise Appeal No. 1112 of 2007 - FINAL ORDER NO . 51944 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in working out the assessable value of the goods in terms of amended section 4, effective from 1.7.2000, the respondents had not included design and engineering charges amounting to ₹ 31,00,000/-. Further storage, handling, erection, commissioning and P G test of plant and equipment charges, amounting to ₹ 1,25,00,000/-, were also not included in working out the assessable value of the goods manufactured by them. Apart from this, the respondents had also charged and recovered freight and transportation charges of ₹ 11,05,642/- while they had actually paid an amount of ₹ 7,43,522/-. Thus, they have recovered an excess amount of ₹ 3,62,120/- from their customers in the guise of transportation charges which it ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We find that Commissioner (Appeals), while granting relief to the respondents have observed that as part of the contract, the appellants manufactured goods and equipments valued ₹ 12,66,05,500/- and cleared the same from their factory on payment of appropriate duty of excise. These goods were brought to the premises of M/s. SAIL, BSP, Bhilai where the plant and equipment were erected. Apart from this, various civil structures were also erected. The appellants did the designing and engineering for the civil structure at the premises of M/s. SAIL, BSP where the erection and installation of walking beam cooling bed etc. was done on turnkey project basis. In this context, the Superintendent of Central Excise Range Jamul-I, Bhilai, vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see. For the above proposition, we refer to the Tribunal s decision in the case of Alfa Laval (India) Pvt. Ltd. vs. Collector of Central Excise, [1998 (100) ELT 502 (Tri)] and Commissioner of Central Excise, Bangalore vs. Kirloskar Electric Co. Ltd. [2005 (182) ELT 334 (Tri-Bang)]. 8. As regards the consideration received for storage, handling, erection, commissioning and P G test of plant and equipment charges, Commissioner (Appeals) has set aside the demand by observing that the same are the activities relatable to erection of plant and machinery at the site of M/s. SAIL. The erection and installation is done out of goods supplied by the assessee as well as by others and which ultimately results into coming into existence of immovable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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