TMI Blog2003 (5) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 65,77,852/- raised under two show cause notices dated 7-8-2001 and 5-4-2002. The adjudicating authority imposed a penalty of Rs. 14,00,000/- for the period 1-7-2000 to 31-3-2001 and Rs. 33,00,000/- for the period 1-4-2001 to 31-12-2001 under Rule 173Q of the Central Excise Rules, 1944. The assessee shall also be liable to interest in terms of Section 11AA, if it failed to pay the amounts within the period stipulated under the Section. 3. The issue that is raised in this appeal is whether installation and commissioning charges received by the appellant has to be included in the value of chillers and air handling units manufactured and cleared by the appellant's unit. The assessee contended before the Commissioner that the installation a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le of being marketed as such. Out of the total 410 number of transactions undertaken by the appellant during the relevant period 79% of the transaction, was mere supply transaction and only 18% involved composite orders for supply, installation and commissioning. That portion of the contract representing the work was separated and a sub-contractor was engaged to complete installation and commissioning work. Therefore, I according to the appellant the installation, testing and commissioning charges cannot be added to the assessable value of chillers/air handling units manufactured and cleared from its factory. 5. We heard the learned DR who sought to support the order impugned on the reasoning mentioned therein. 6. We find merit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nerator being an excisable commodity, the cost of erection, installation and commissioning charges would be included in its assessable value. In other words if the expenditure on erection, installation and commissioning has been incurred to bring into existence any excisable goods, these charges would be included in the assessable value of the goods. If these costs are incurred to bring into existence some immovable property, they will not be included in the assessable value of such resultant property. [Refer Board's 37B Order No. 58/2002-CX., dt. 15-1-2002]." In the light of the above clarification which has been brought to the notice of the learned Commissioner there was no justification in this case for adding the installation and comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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