9911796707
TMI Blog2008 (9) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... ficers of central excise to the factory of DBE, it was found that they were undervaluing UPS systems manufactured by them by not including the value of batteries supplied. Their contract with their customers was for the supply of UPS systems and battery. Show cause notice dated 4-2-1993 proposing recovery of duty of Rs. 22,41,566.41 on the ground of undervaluation of UPS systems by non-inclusion of value of the battery during the period January 1988 to May 1992, was issued. The notice also proposed penal action under the provisions of Rule 173Q of the Central Excise Rules, 1944. The notice was adjudicated by the Collector of Central Excise and Customs vide order dated 1-7-1994 wherein the proceedings initiated in the notice were dropped. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries to customers to whom DBE sold UPS systems. It was also verified that the reference to invoices made in the show cause notices was exclusive of batteries and delivery of UPS systems was made under separate duty paying invoice. The Commissioner held that there is no ground to include the cost of batteries in the assessable value of UPS systems manufactured and cleared by DBE during the period covered by show cause notice dated 4-2-1993 and the period covered under the remaining 24 show cause notices and hence dropped the proceedings initiated in the above 25 notices. It is against this order dated 27-9-2005 of the Commissioner that the Revenue has preferred appeal No. E/3422/06. 2. By order dated 18-11-1999, the Assistant Commissioner c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee only during 2000. The reference of invoices made in the show cause notices have been found to be exclusive of battery only. The delivery of UPS system has been observed to be made under separate duty paying invoice. The delivery of the batteries was made by the assessee at the option of their customers. The said activities related to transaction of batteries have been stated to be the trading activity of the assessee. Relevantly, annexure to the show cause notice has specifically made a mention of the fact of direct delivery of batteries from the suppliers to the premises of the customers of the UPS. In the light of above observations, it appears that no liability for central excise duty is attracted in relation to batteries ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
