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TMI Blog2017 (2) TMI 307X X X X Extracts X X X X X X X X Extracts X X X X ..... heir manufactured goods on payment of duty and then undertaken the service of entire works contract. As regard, the supply of the manufactured parts to the site the valuation is done under cost construction method i.e. under Rule 8 of Central Excise Valuation Rules, 2000. Against the total value of the composite contract the appellant received advance payment. The department contends that the notional interest of such advance should be added in the value of the goods manufactured and supplied by the appellant. Accordingly, the demand of differential duty was confirmed for the period July 2001 to December 2002. Being aggrieved by the Order-in-Original the appellant filed appeal before the Commissioner (Appeals), who after giving observation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at on 110% of the cost of manufacturing. In the cost of manufacturing there is no provision to add the notional profit in the cost of manufacturing therefore in terms of Rule 8 of the Central Excise Valuation Rules, except the cost of manufacture plus 10% notional profit no other element can be added. For this reason, the notional interest on advances cannot be added in the assessable value. He further submits that a small part of the total value of the turnkey project was accepted as advance whereas the portion of appellants manufactured goods is very small as compared to the whole project. Therefore for this reason also, the notional interest of the advance which is not only against the appellants manufactured goods but also towards other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at his hand. 4. We have carefully considered the submissions made by both the sides, we find that issue in hand is the inclusion of notional interest on the advances received by the appellant against the over all project work of supply, erection, installation and commissioning of lifts at the customer site. It is observed that the supply portion in the over all project which represent the clearance of assessee's manufactured goods is less than 50% of the over all value of the project cost. Therefore for this reason interest is not prima facie includible in the assessable value. There is a force in the submission of the appellants when the valuation of the goods manufactured and supplied by the assessee is done and accepted in terms of Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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