Assessable value under central excise excludes erection charges and may exclude accessories or deductions after verification.

Optional accessories supplied with machinery are includible in assessable value only if they are shown to be an essential and integral part of the machinery; on the facts, that question required fresh examination and was remanded. Erection and commissioning charges were treated as outside the assessable value and excluded. Deductions under Section 4(4)(d)(ii) of the Central Excise Act may be allowed if duty paid or payable is properly verified, so that claim was also sent back for consideration. Proforma credit under Rule 56A could likewise be examined on remand if otherwise permissible, with no final allowance recorded.

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Issues: (i) whether the cost of bought-out items supplied with machinery was includible in the assessable value; (ii) whether erection and commissioning charges were includible in the assessable value; (iii) whether deductions under Section 4(4)(d)(ii) of the Central Excise Act were allowable; and (iv) whether proforma credit under Rule 56A of the Central Excise Rules could be granted.

Issue (i): whether the cost of bought-out items supplied with machinery was includible in the assessable value.

Analysis: The question whether the items were merely optional accessories or whether they formed an essential and integral part of the machinery had not been properly examined by the lower authority. Inclusion in assessable value depends on that factual determination.

Conclusion: The issue was remanded for reconsideration and no final finding on inclusion was recorded.

Issue (ii): whether erection and commissioning charges were includible in the assessable value.

Analysis: Erection and commissioning charges were treated as not forming part of the assessable value in the settled line of decisions relied on by the Tribunal.

Conclusion: The charges were held not includible and the assessee succeeded on this issue.

Issue (iii): whether deductions under Section 4(4)(d)(ii) of the Central Excise Act were allowable.

Analysis: The deduction claim had been raised before the adjudicating authority but not examined. The provision permits deduction of duty paid or payable in determining assessable value, subject to verification of the relevant facts.

Conclusion: The matter was sent back for examination and appropriate deduction, if admissible, was directed to be allowed.

Issue (iv): whether proforma credit under Rule 56A of the Central Excise Rules could be granted.

Analysis: The claim was not previously pressed before the adjudicating authority, but the Tribunal held that, since the matter was being remanded, the claim could be considered if otherwise permissible and on verification.

Conclusion: The issue was left to be examined on remand and no final allowance was made.

Final Conclusion: The appeal resulted in a partial success for the assessee, with one issue decided in its favour and the remaining issues sent back for fresh consideration.

Ratio Decidendi: Optional accessories are not includible in assessable value, erection and commissioning charges are excludible, and statutory deductions or credit benefits may be granted only after proper factual verification and application of the governing excise provisions.

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