Tribunal rules optional accessories value not to be included in assessable value

The Tribunal upheld the Order-in-Appeal setting aside demands for optional brought out items supplied with connectors, agreeing with the assessee that their value should not be added to the connectors' value for assessment. Relying on precedent cases and principles, the Tribunal found in favor of the assessee, noting that similar cases had been decided similarly in the past. The Revenue's appeal was rejected, affirming that the value of optional accessories should not be included in the assessable value of the main product.

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Issues:
Revenue appeal against setting aside demands for brought out items like "screw locks and lever locks" supplied as optional accessories with connectors. Whether the value of optional brought out items should be added to the value of connectors for assessment.

Analysis:
The Revenue appealed against the Order-in-Appeal setting aside demands for brought out items supplied as optional accessories with connectors. The Revenue argued that the value of these optional items should be included in the value of the connectors supplied by the assessee. The learned Chartered Accountant for the Respondent relied on various judgments to support their contention, including cases like Volvo India Limited v. CCE, Bangalore, CCE v. Acer India Limited, and UOI v. Bombay Tyre International Ltd. The Chartered Accountant also referred to the Tribunal's decision in the case of Supercold Refrigeration Systems Pvt. Ltd. v. CCE and Neycer India Limited v. CCE, highlighting that the value of purchased items supplied as optional accessories is not includable in the assessable value.

Upon careful consideration of the submissions and case laws cited, the Tribunal agreed with the Chartered Accountant that the issue is covered in favor of the assessee. The Tribunal noted that similar cases had been decided in favor of the assessee in the past by applying the principles established in the aforementioned judgments. The Commissioner had already determined that the brought out items were supplied as optional accessories, were duty paid, and their value should not be added to the value of the connectors. Consequently, the Tribunal found no fault in the impugned order and rejected the Revenue's appeal. The operative portion of the order was pronounced in open court upon the conclusion of the hearing.

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