Installation charges for duty-paid machinery cleared from factory are excluded from assessable value under excise valuation rules.

When excisable machinery is cleared from the factory on payment of central excise duty as machinery, subsequent installation at the buyer's premises does not change the character of the clearance. Post-clearance installation charges were held not to form part of the assessable value, because the duty had already been paid on the machines as cleared. The fact that the machines were removed in three parts did not make the earlier final order or the Board's circular inapplicable. The result was that installation charges were excluded from valuation and the assessee's position was accepted.

---

---

Issues: Whether installation charges for machinery installed at the buyer's premises are includible in the assessable value when excise duty has already been paid on the machines cleared from the factory.

Analysis: The machines were cleared from the factory on payment of central excise duty as machines, though in parts, and were later installed at the buyer's premises. The Tribunal held that this factual position did not alter the character of the clearances. The objection that removal in three parts made the earlier decision and the Board's circular inapplicable was rejected. The earlier final order and the Board's circular were treated as directly applicable to the case.

Conclusion: Installation charges were not includible in the assessable value, and the issue was decided in favour of the assessee.

Ratio Decidendi: Where excisable machinery is cleared on payment of duty as machinery, post-clearance installation charges at the buyer's premises do not form part of the assessable value.

---