TMI Blog2017 (11) TMI 1166X X X X Extracts X X X X X X X X Extracts X X X X ..... same - Appeal allowed - decided in favor of appellant. - E/362/2009 - Final Order No. 62025/2017 - Dated:- 13-10-2017 - Mr. Ashok Jindal, Member (Judicial) and Mr. Devender Singh Member (Technical) Present for the Appellant : Shri D.K,Tiyagi, Advocate Present for the Respondent : Shri Satyapal, AR ORDER The brief facts of the case are that M/S. Knorr Bremse Systems (I) Limited are manufacturing and supplying Railways Brake equipments etc. to Indian Coach Factory, Railways, Chennai after paying central excise duty @ 16%. They had a contract with ICF, Chennai for supply and installation of Air Brake Equipment for non-AC coaches with bogies mounted brake cylinder. For completion of this work, the appellant were getting t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order and allowed the appeal of the Revenue. Aggrieved from the same, the appellant has filed this appeal. 2. Ld. Advocate for the appellant submits that the purchase order at Page No. 45-46 of Paper book provides for separate price of main equipment and pipe fittings. Besides, installation charges were also indicated separately in the purchase order. He argued that the air brake system which was supplied was complete equipment on which duty was paid and that the Commissioner (Appeals) has mistakenly stated that the components of air brake equipment were supplied. He also relied upon the Board's Circular No.58/1/2002-CX. Dated 15.1.2002. He also contended that the installation, erection and commissioning charges for equipment install ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leared on payment of duty. We also find that adjudicating authority has given a finding that no modvat credit was availed by the assessee on the pipes and fittings, which were supplied directly to the job worker's premises. 8. We find that in the above factual matrix, the adjudicating authority has correctly analysed the issue in Paras 12-15 of the adjudication order, which are extracted below:- 12. Though a composite purchase order was given by ICF Chennai to the assessee, the contract had two parts one supply of main equipment second pipes pipe fittings installed on the coaches and makes the Air brake system functional. 13, Board had the occasion to examine the issue of erection commissioning and installation in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y assembly and connection of various components and parts. Though each component is dutiable, the refrigeration/air conditioning systems as a whole cannot be considered to be excisable goods . (emphasis supplied). Thus in the light of above what is excisable is the air brake equipment manufactured by the assessee and not the air brake systems which comes into existence at ICF Chennai after the installation of air brake equipment by the job worker through the process of bending, welding and laying of pipes. 15. The activity of erection, installation and commissioning undertaken at ICF Chennai by the job worker is essentially a post manufacturing activity. Whether the value of these activities should form part of the value of equipm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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