9911796707
TMI Blog2023 (12) TMI 780X X X X Extracts X X X X X X X X Extracts X X X X ..... I Commissionerate, by which the demand of Central Excise Duty including AED, NCCD, Ed. Cess, and secondary and higher Ed. Cess amounting to Rs. 3,64,96,755/- was confirmed, for the period of 2010-2011 and 2014- 2015 by invoking the extended period of limitation. 2. The Appellant is engaged in the business of manufacturing of excisable goods namely parts of Industrial Furnaces, Handling Equipment System, etc. falling under Chapters Heading No 84 and 85 of the CETA, 1985. A show cause notice dated 22.05.2015 was issued to the Appellant with the allegations that they have evaded payment of duty on the full value of Industrial Furnaces, manufactured and cleared by them, by separately invoicing clearance of bought-out-items and manufactured ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, the Appellant also relied on the decisions in the following cases : (i) NEYCER INDIA LTD. VS. COMMISSIONER OF CENTRAL EXCISE, TRICHY, IN THE CESTAT, SOUTH ZONAL BENCH, CHENNAI, 2005 (192) E.L.T. 620 (Tri.-Chennai). (ii) GODREJ & BOYCE MFG. CO. LTD. VS. CCE, DELHI-II, IN THE CESTAT SOUTH ZONAL BENCH, CHENNAI, MANU/CC/0019/2017 (iii) CHEEMA BOILERS LTD. VS. COMMR. OF. C. EX. & ST., CHANDIGARH, IN THE CESTAT, REGIONAL BENCH, CHANDIGARH, 2018 (362) E.L.T. 268 (Tri.- Chand.) 5. The Appellant submits that in their case the bought-out items are part of the immovable property being supplied as part of the composite contract entered with their customers. Thus, the question of the bought-out items being added for valuation of payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observe that this view has been held by CESTAT, Ahmedabad in the case of TRANSRAIL LIGHTING LTD. vs. COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, SILVASA,WEST ZONAL BENCH, AHEMDABAD (2023) 7 CENTAX 185 (Tri.Ahmd). The relevant part of the order is reproduced below: "6. It is also not even a case that appellant have provided the standard set of bought out items along with lattice mast but only in few cases it is supplied along with lattice mast. There are also cases where appellant are supplying only bought out items as a trading activity and not with lattice mast. This shows that the bought out items are optional for the customers to buy from the appellant manufacturing lattice mast. We find that the manufacturing of lattice mas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be considered as extra consideration towards the manufacture of excisable goods produced by the respondent. 4.1 On going through the orders passed by both the lower authorities, we observe that both the authorities have correctly considered the issue in its entirety and analyzed the relevant provisions and settled case law and came to the conclusion that the value of nuts, bolts, etc., is not includible in the assessable value of the transmission line towers manufactured by the respondent... "7. Likewise, there are so many judgments cited by the learned Counsel wherein it was consistently held that value of bought out items supplied along with manufactured goods cannot be included in the assessable value of the manufactured goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the photocopiers..........Therefore, we allow the appeal with consequential relief by considering the boughtout items as accessories only." 12. We observe that after erection of the furnace, the bought-out items are part of the immovable property. Thus, by relying on the decisions cited above, we hold that the value of bought out items, which are traded goods of the Appellant, are not includable in the assessable value for the purpose of charging central excise duty. Accordingly, we hold that the demand confirmed in the impugned order is not sustainable and we set aside the same. Since the demand itself is not sustainable, the question of demanding interest and imposing penalty does not arise. 13. In view of the above discussion, we ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
