TMI Blog2004 (3) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... e are that Emerson Network Power India Pvt. Ltd. are engaged in the manufacture of precision air-conditioning equipment and UPS systems cleared on payment of duty as complete machines. They also undertake installation and commissioning at the premises of their customers when the customers require them to do so. In the contract/purchase orders, the scope of charges for installation and commissionin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CCE - 1998 (99) E.L.T. 481. The present appeals relate to the period after 1-7-2000, i.e. after substitution of Section 4 of the Central Excise Act by new Section 4 introducing the definition of "transaction value". Show cause notices were issued to the appellants, proposing to include installation and commissioning charges, cost of bought-out items, interest on advances, and freight and insuran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is Rs. 1,01,23,715/- out of which Rs. 93,22,882/- is the demand on air-conditioning machines while the balance of Rs. 8,00,833/- is on UPS systems. We note that in the case of Carrier Aircon Ltd. v. CCE - 2003 (160) E.L.T. 419 (T) = 2003 (57) RLT 134 the Tribunal has held, while considering a contract for supply and installation and commissioning like in the present case, that installation and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as floor grills, piping, cabling etc., it would be seen that they are not parts of air-conditioning machines manufactured and cleared, but items required purely at site. Therefore, the appellants are right in contending that the cost of bought-out items cannot be included in the assessable value. 5. The appellants do not contest the inclusion of freight charges of Rs. 3,401/- and hence this i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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