TMI Blog2018 (2) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... pipes sold to M/S. BSES - The amount of ₹ 6,20,400/- surely was an additional payment required to be done by M/s. BSES and ors., to the appellants herein by reason of order in connection with the sale of the impugned GR pipes. The addition of such charges for arriving at the assessable value cannot then be disputed - demand upheld. Penalty - Held that: - the controversy has emanated only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct, 1985. 2. The appellants collected ₹ 6,20,400/- from M/s. BSES Ors., to whom they supplied GR Pipes as design charges of GR Pipes and the same was not included in the transaction value. 3. Department took the view that the said amount requires to be added to the assessable value. Accordingly, in proceedings initiated vide issue of show-cause notice, dated 30.08.2005, an amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had to use sophisticated, expensive software to prepare the design, drawing and calculations, which was outsourced and paid for, without any assurance, the contract would be awarded to the appellants. The submission of drawing is a general trade practice in the industry and also with a view to establish design capability to design pipes as per the requirement of the client. The expression by reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en the said charges collected and the pipes sold to M/S. BSES. The definition of transaction value under section 4(3)(d) of the Central Excise Act, 1944 is very broad in its ambit and, inter alia , requires components of price or any amount that the buyer is liable to pay to assessee by raising of on in connection with the sale. The amount of ₹ 6,20,400/- surely was an additional payment re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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