2017 (8) TMI 434 - AT - Central Excise

Inclusion of design costs in PCB value upheld; appeal dismissed.

BPL Limited Versus Commissioner of Central Excise, Customs and Service Tax, Bangalore-I

The Tribunal upheld the inclusion of the cost of designs and drawings in the assessable value of Printed Circuit Boards (PCBs) based on a previous ... Valuation - cost of specification and cost of developing screen printing - includibility - Held that: - the designs and drawings charges are required to be added in the assessable value - appeal dismissed - decided against appellant-assessee. Issues:- Inclusion of cost of designs and drawings in the assessable value of Printed Circuit Boards (PCBs).Analysis:The appeal was filed against the order passed by the Commissioner (A) upholding the Order-in-Original and dismissing the appellant's appeal. The appellant, engaged in the manufacture of PCBs, had been facing issues regarding the inclusion of costs related to designs and drawings in the assessable value of the PCBs. The audit pointed out that certain costs, such as the cost of specifications and developing screen printing, were not included in the assessable value, leading to a show-cause notice being issued. The Order-in-Original dated 30.10.2000 held that the cost of screen printing was already included, but the cost of design needed to be added. Subsequent show-cause notices were issued, resulting in duty demands and penalties. The appellant contended that the cost of designs/specifications should not be included in the assessable value. The Commissioner (A) remanded the cases for fresh adjudication, which led to the confirmation of duty demands. The appellant challenged this decision, leading to the present appeal.During the hearing, the appellant argued that the impugned order did not consider the facts and legal position properly. On the other hand, the respondent referred to a previous decision by the Tribunal in the appellant's case, where it was held that design and drawing charges should be added to the assessable value. Since the appellant did not challenge this decision before a higher forum, it was considered final. Therefore, based on the precedent set by the Tribunal's earlier decision, the impugned order was upheld, and the appeal of the appellant was dismissed.In conclusion, the Tribunal upheld the inclusion of the cost of designs and drawings in the assessable value of PCBs based on a previous decision in the appellant's case. The appeal was dismissed, affirming the duty demands and penalties imposed by the authorities.