2005 (3) TMI 132

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..... p; floor plates assemblies for TELCO. These floor plate assemblies are used by TELCO in the manufacture of  excavators. TELCO made available several inputs to the appellant for the purpose of manufacture of the assemblies on which credit had been taken by TELCO. The appellant used TELCO's inputs as well as its own inputs in manufacturing the assemblies. It cleared the assemblies from its fact .....

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..... on of this Court in Burn Standard Company Ltd. and another v. Union of India  - 1992 (60) E.L.T. 671 = 1991 (3) SCC 467 but reduced the penalty to Rs. 25,000/-. 5.Before us learned Counsel appearing on behalf of the appellant has submitted that the entire transaction between the TELCO and the appellant was covered by Rule 57F(2)(b) of the Central Excise Rules, 1944. Under these Rules the ass .....

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..... cerned, it is not liable to pay duty on the inputs supplied by TELCO since it had not taken the credit for the Modvat in respect of inputs. It is submitted that it cannot be called upon to pay the duty in respect of those inputs nor can the value of the inputs be added to the excisable value of the assemblies. 6.We are of the view that the submission of the appellant is correct. The Tribunal appe .....

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..... included in the final product. In that case, the final product was wagons and the question was whether the items which were supplied free by the Railway Board to the assessee could be included in the value of the wagons. This Court came to the conclusion that it could. The first distinguishable feature is that this Court in that case was neither concerned with the Modvat scheme, nor with the prov .....

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..... ment delivered in C.A. No. 176/2000 (M/s. International Auto Ltd. v. Commissioner of Central Excise, Bihar) these appeals must be allowed. The penalty imposed on the appellant is set aside. However, it is recorded that the appellant is not claiming refund of any duty that had been paid by it pursuant to the demand which is set aside by us. 9.These appeals are accordingly allowed.
Case laws, D .....

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