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M/s. Otis Elevators Company (India) Ltd. Versus Commissioner of Central Excise, Mumbai-V

2017 (2) TMI 307 - CESTAT MUMBAI

Valuation - composite contract - project work of supply, erection, installation and commissioning of lifts at the customer site - Against the total value of the composite contract the appellant received advance payment, whether the addition of notional interest on advance amount is includible in the assessable value? - Held 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. .....

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e of the matter finally - appeal allowed by way of remand. - E/3065, 3150/06 - A/85225-85226/17/EB - Dated:- 5-1-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri Gopal Mundra, C.A with Shri Ginita Bodani, C.A. for Appellant Shri Ashutosh Nath, Asstt. Commr. (A.R) for Respondent Per : Ramesh Nair The appellants have manufactured and cleared parts and accessories of lift. The appellant undertakes turnkey projects for supply, erection, installation and commissioning .....

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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 that in which circumstances the interest can be added in the assessable value remanded the matter to the adjudicating authority. Therefor .....

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e submits that as regard the addition of notional interest in the value of the manufactured goods, the issue has been decided by this Tribunal in the appellant s own case reported as Commissioner of Central Excise, Mumbai-IV Vs. Otis Elevator Co. (India) Ltd. 2013 (292) E.L.T. 228 (Tri.-Mumbai), therefore the issue in hand is no longer res integara. He further submits that the appellant is manufacturing parts of lift and supplying at site for execution of the entire turnkey project of erection, .....

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facturing 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 not .....

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A67 (S.C.) (iv) Commissioner Vs. Whirlwind Corporation 2003 (151) E.L.T.A 189 (v) Collector of Central Excise, Vadodara Vs. Dhiren Chemical Industries 2002 (143) E.L.T. 19 (S.C.) (vi) Paper Products Ltd. Vs. Commissioner of Central Excise 1999 (112) E.L.T. 765 (S.C.) (vii) Moosa Haji Patrawala Pvt. Ltd. Vs. C.C.E., Mumbai/Aurangabad 2001 (138) E.L.T. 290 (Tri.-Mumbai) (viii) Commissioner Vs. Lakshmi Precision Tools Ltd. 2004 (183) E.L.T. A65 (S.C.) (ix) Otis Elevator Company (India) Ltd. Vs. Co .....

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