Tribunal excludes bolts & nuts from excise duty! Precedent cited, appeals allowed.

The Tribunal ruled in favor of the appellant, stating that the value of bolts and nuts supplied along with fabricated parts for tower erection should not be included in the assessable value for excise duty payment. Citing precedent, the Tribunal emphasized that when bought-out items are used on-site for creating immovable property, their value should be excluded from duty calculation. As a result, the impugned order was set aside, and the appeals were allowed, clarifying that the value of bolts and nuts need not be considered for excise duty payment in such circumstances.

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Issues:
1. Inclusion of value of bolts and nuts in assessable value for excise duty determination.

Analysis:
The case involved an appeal against an Order-in-Original dated 8.11.2015 & 24.11.2015 concerning the period of dispute from 2009 to 2014. The appellant, engaged in manufacturing towers and structures for power transmission, supplied fabricated galvanized parts with holes for bolts and nuts for tower erection. The department contended that the value of bought-out items like bolts, nuts, washers should be included in the assessable value for duty calculation. The Tribunal referred to a previous case where it was held that when bought-out items are used on-site for creating immovable property, their value need not be included for excise duty payment. Consequently, the Tribunal set aside the impugned order and allowed the appeals, stating that the value of bolts and nuts need not be included for excise duty payment.

The Tribunal noted that the dispute revolved around the value of goods subject to excise duty payment. Citing a previous case, it was emphasized that when materials not manufactured by the appellant but supplied along with the main product are used for creating immovable property, their value should not be included for excise duty calculation. This principle was applied in the current case, leading to the decision that the value of bolts and nuts need not be considered for excise duty payment, especially when these items were utilized on-site for erecting transmission line towers. As a result, the impugned order was set aside, and the appeals were allowed, with miscellaneous applications being disposed of accordingly.

In conclusion, the judgment clarified that in situations where bought-out items are utilized on-site for constructing immovable property, their value should not be included for excise duty payment. This principle was applied to the case at hand, where the appellant supplied fabricated parts along with bolts and nuts for tower erection. As a result, the Tribunal set aside the original order and allowed the appeals, indicating that the value of bolts and nuts need not be factored into the excise duty calculation, given their use in creating immovable property.

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