TMI Blog2008 (5) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeded against the appellants holding that they are includible – action of department is not acceptable – appeal of assessee is allowed - E/542 and 231-233/2007 - 580-583/2008 - Dated:- 16-5-2008 - Dr. S.L. Peeran, Member (J) and Shri T.K. Jayaraman, Member (T) Shri G. P. Sastry, Advocate, for the Appellant. Ms. Sudha Koka, SDR, for the Respondent. [Order per: T.K. Jayaraman, Memb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the Bench that the appellant M/s. Coramandel Paints Ltd. are the manufacturers of paints, which are excisable. They had actually manufactured Marine Grade Paints on job work basis and supplied to one M/s. Sigma Marine and Productive Coatings India Ltd. at the price agreed in their agreement dated 22-2-2000. The Excise Duty is paid on the transaction value. However, M/s. Sigma Marine and Product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me to the Commissioner (Appeals) he had also confirmed the demand. According to the department this expenditure is incurred by the buyer in connection with the sale of the goods by the appellant and the cost of this supervision should form part of the cost of the bills. That is the view of the department. On the other hand, the learned Advocate pointed out that the buyer in his own interest has in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction value. 5. On the other hand, the learned Departmental Representative reiterated the findings of the lower authorities. 6. On a very careful consideration of the matter, we find that the 'Transaction value' is defined in Section 4 in the following manner: "Transaction Value" means the price actually paid or payable for the goods when sold, and includes in addition to the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction overhead to the appellant. The buyers have incurred this expenditure, because they had appointed the Manager and two Technicians for supervising the production to ensure the correct quality. This has been done by the buyers in their own interest. It cannot be said that the manufacturing process could not have been completed, but for the supervision of the buyer. Therefore, there is no lega ..... X X X X Extracts X X X X X X X X Extracts X X X X
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