CEGAT Tribunal: Bought out items not part of assessable value. Duty overturned.

The Appellate Tribunal CEGAT, New Delhi, set aside the decision of the Commissioner (Appeals) regarding the inclusion of bought out items in the assessable value of goods manufactured. The Tribunal ruled that the bought out items supplied through a subcontractor were not to be included in the assessable value as they were not part of the goods cleared from the appellant's factory. The appeal was allowed, and the duty demanded on the bought out items was overturned.

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Issues:
The issue involves the inclusion of the cost of bought out items in the assessable value of goods manufactured and supplied on a contract basis for the supply of complete Cement Plant Machines.

Summary:
The Appellate Tribunal CEGAT, New Delhi, heard an appeal challenging the order passed by the Commissioner (Appeals) regarding the inclusion of bought out items in the assessable value of goods. The adjudicating authority demanded duty on the grounds that the bought out items were essential for the completion of Main Cement Plant Equipment. The Commissioner (Appeals) upheld this decision, citing a previous Tribunal case. However, upon review, it was found that the bought out items were not manufactured by the appellant but were supplied through a subcontractor at the site of the unit. The Tribunal determined that the bought out items were not to be included in the assessable value of the goods manufactured by the appellant, as they were not part of the goods cleared from the appellant's factory. Therefore, the Tribunal set aside the impugned order and allowed the appeal.

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