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Commissioner of Central Excise, Mumbai-IV Versus Evergreen Engg. Co. Pvt. Ltd.

2016 (9) TMI 93 - CESTAT MUMBAI

Valuation - Includability - in the assessable value of the goods i.e. monoliths/signages cleared from the factory - amounts collected by the respondent as charges towards erection, installation and commissioning charges and pre-delivery inspection charges - Held that:- the issue is now squarely covered by the judgment of the apex court in the case of Thermax Ltd. vs. CCE [1998 (4) TMI 134 - SUPREME COURT OF INDIA] wherein it was held that the installation and commissioning charges have to be tre .....

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nt Commissioner (AR), for appellant Shri R.V. Shetty, Advocate, for respondent ORDER This appeal is filed by the Revenue against order-in-appeal No. BR/18/M-IV/2005 dated 21.1.2005. 2. The relevant facts that arise for consideration are the respondent herein is a manufacturer of monoliths/signages (hereinafter referred to as the goods) of various types. It is the case of the Revenue that during April 1999 to December 2003, the respondent manufactured and cleared the goods on payment of duty at t .....

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wing due process of law and the central excise duty as well as interest thereon was confirmed and penalties were also imposed. Aggrieved such an order, an appeal was preferred before the first appellate authority who, after considering the facts of the case and various binding decisions, set aside the impugned order and allowed the appeal. 3. Learned departmental representative arguing on behalf of the Revenue, draws our attention to the facts of the case. It is his submission that the goods, wh .....

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into picture, due to which any amount which is collection in relation to the same, duty liability has to be discharged. He would submit that the monoliths/signages will come into existence only when there is a permanent light source to the illuminated signboard. He would rely upon the Board s circular dated 1.7.2002 which clarified that amounts collected for erection, installation and commissioning charges are includible in the assessable value for discharge of excise duty. 4. Learned counsel ap .....

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Power Supplies vs. CCE, Chennai reported in 2002 (149) ELT 369, Apollo Tyres Ltd. vs. CCE, Cochin reported in 2003 (160) ELT 836 and the judgment of the Hon ble Supreme Court in the case of Thermax Ltd. vs. CCE reported in 1998 (99) ELT 481 (SC). 5. On careful consideration of the submissions made by both sides and perusal of records, we find that the issue which falls for our consideration is whether the amounts collected by the respondent as charges towards erection, installation and commissi .....

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at was cleared from the factory premises of the respondent was a complete monolith. The contract specifically indicates that erection and commissioning of the said monolith can be undertaken by the respondent for an additional payment. It is nowhere indicative in the contract that the respondent was obliged to do the said installation and erection and no one else was to be appointed for such work. In the absence of any restrictive clause in the agreement, we find that the amount received by the .....

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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 supplied by the appellants. Or, to put it differently, whether the installation and commissioning charges are exigible to excise duty? This controversy stands concluded by two decisions of this Court. 10. In PSI Data Systems Ltd. v. Collector of C .....

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