Composite supply valuation for coolers included the attached water tank as part of assessable value under central excise.

For central excise valuation, the value of an additional water tank supplied with coolers was treated as part of the assessable value because the tank formed a composite supply with the cooler and had no separate independent utility. The Tribunal noted that the tank was priced separately but was included in the duty base, and it distinguished authorities dealing with independently assessable items or true accessories. The exemption notification cited was found irrelevant on the facts. It was also observed that attachment of tank components acquired from third parties to the main unit would still amount to manufacture attracting duty. The appeal failed.

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Issues: Whether the value of the additional water tank supplied with the coolers was includible in the assessable value of the coolers for central excise purposes.

Analysis: The rate contract and the show cause notices treated the cooler and the additional water tank as a composite supply, with the tank separately priced but included in the amount on which duty was charged. The evidence showed that the tank was not supplied as an independent article with separate utility, but formed part of the cooler's working arrangement by providing additional water storage for prolonged operation. The exemption notification relied upon was held to be irrelevant on the facts, and the cited decisions were distinguished because they related to independently assessable items or true accessories. The Tribunal also noted that even if the tank components were acquired from third parties, their attachment to the main unit would amount to manufacture attracting duty.

Conclusion: The value of the additional water tank was rightly included in the assessable value of the coolers, and the appeal failed.

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