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of <h1>Tribunal excludes integration charges from assessable value, setting new precedent in excise duty calculation</h1> <h3>Petals Engineers Pvt Ltd. Versus Commissioner of Customs & Central Excise, Goa</h3> Petals Engineers Pvt Ltd. Versus Commissioner of Customs & Central Excise, Goa - TMI Issues involved:- Whether integration and commissioning charges can be included in the assessable value of excisable machines.Analysis:1. The appeal challenged an Order-in-Appeal rejecting the appellant's appeal against a demand for integration/commissioning charges recovered from customers. The appellant argued that such charges were for independent activities post-manufacture and should not be part of the assessable value.2. The appellant contended that integration/commissioning charges were separate from the sale value of machines, not excisable, and should not be included in the assessable value. The Revenue argued that all amounts related to the sale of goods should be part of the transaction value for excise duty purposes.3. The Tribunal noted that integration/commissioning charges were distinct activities, not related to the sale of goods, and should not be included in the assessable value. Several judgments were cited supporting this view, emphasizing that post-clearance activities do not form part of the assessable value.4. Citing various precedents, the Tribunal consistently held that charges for installation, erection, and commissioning at the customer's site should not be included in the assessable value of goods. The Tribunal allowed the appeal, setting aside the demand for integration/commissioning charges in the assessable value of the machines.Conclusion:The Tribunal ruled in favor of the appellant, holding that integration and commissioning charges should not be included in the assessable value of the excisable machines. The appeal was allowed, setting aside the demand for such charges. The judgment emphasized the distinction between post-manufacture activities and the sale value of goods for excise duty calculation.
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