Assessable value exclusion turns on proper analysis of feasibility, design and service charges; remand ordered for fresh consideration.

Feasibility charges, system analysis or designing charges, and service charges were treated as potentially similar to consultancy and demonstration charges already excluded from assessable value, but the basis for distinguishing them was not clearly explained. The optional nature of the feasibility charges was not examined on merits, and the nexus of the disputed charges with design or marketability was not properly analysed in light of the applicable case law. The matter was therefore remanded to the Adjudicating Authority for fresh consideration of the three items on the merits after allowing the assessee to substantiate its claim.

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Issues: Whether the dispute regarding exclusion from assessable value of feasibility charges, system analysis or designing charges, and service charges required remand for fresh consideration.

Analysis: The order noted that consultancy and demonstration charges had already been excluded, while feasibility, system analysis or designing, and service charges were treated as similar in nature. It further observed that the reasoning for excluding some similar charges while not excluding others was not clearly explained. The plea that feasibility charges were optional was also not examined on merits, and the nexus of the disputed charges with design or marketability was not properly considered in light of the applicable case law.

Conclusion: The matter was remanded to the Adjudicating Authority for reconsideration of the three disputed items and for a fresh decision on merits after giving the assessee an opportunity to substantiate its claim.

Final Conclusion: No final determination was made on the excludibility of the disputed charges, and the assessment issue was sent back for fresh adjudication.

Ratio Decidendi: Where material charges affecting assessable value have not been examined on the correct factual and legal basis, including optionality and nexus with design or marketability, a fresh adjudication is required.

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