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Issues: (i) Whether the value of batteries was includible in the assessable value of UPS systems where the evidence showed that no UPS systems were cleared from the factory along with batteries. (ii) Whether, in the absence of prior factual verification in the case of D.B. Technologies Pvt. Ltd., the matter required remand for verification of clearance of batteries along with UPS systems.
Issue (i): Whether the value of batteries was includible in the assessable value of UPS systems where the evidence showed that no UPS systems were cleared from the factory along with batteries.
Analysis: The earlier remand order had confined inclusion of battery value to cases where UPS systems were cleared along with batteries. On verification by the departmental officer, no clearance of UPS systems together with batteries was found, and the invoices showed separate supply and separate duty-paying clearance of UPS systems. In those facts, no excise liability arose on the battery value for the clearances covered by the first set of notices.
Conclusion: The battery value was not includible in the assessable value of UPS systems on the facts verified, and the assessee succeeded on this issue.
Issue (ii): Whether, in the absence of prior factual verification in the case of D.B. Technologies Pvt. Ltd., the matter required remand for verification of clearance of batteries along with UPS systems.
Analysis: In the second appeal, no comparable verification had been carried out in the factory of D.B. Technologies Pvt. Ltd. The proper course was therefore to set aside the order and require the adjudicating authority to verify whether batteries were actually cleared along with UPS systems, and to pass fresh orders after hearing the assessee.
Conclusion: The matter was remanded for factual verification, with the question of includibility to depend on the verification result.
Final Conclusion: The Revenue's challenge failed on the first set of demands, while the second matter was sent back for de novo factual verification on the limited question of battery clearance along with UPS systems.
Ratio Decidendi: Battery value is includible in the assessable value of UPS systems only where the batteries are cleared along with the UPS systems; where such clearance is not established on verification, inclusion is impermissible.
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