Bought-out accessories excluded from assessable value where they were not integral to Bag Filters and Rotary Feeders.

Electric motors, V-belt drives and geared motors supplied as bought-out accessories were held not includible in the assessable value of Bag Filters and Rotary Feeders because they were not shown to be integral parts of the manufactured goods. The fact that several items were sent directly to customers' sites, without first entering the factory, supported the view that they were not part of the manufactured product. In the absence of evidence that the machines were incomplete without them, a bare revenue assertion was insufficient, and the assessee prevailed on valuation.

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Issues: Whether the value of electric motors, V-belt drives and geared motors, being bought-out accessories used with Bag Filters and Rotary Feeders, was includible in the assessable value of the goods manufactured by the assessee.

Analysis: The accessories were not shown to be integral parts of the manufactured goods. It was significant that in a number of cases they were sent directly to the customer's site without first being brought to the factory. No evidence was produced to establish that the machines were incomplete without such items, and a bare assertion by the Revenue was insufficient to justify inclusion of their value.

Conclusion: The value of the bought-out items was not includible in the assessable value of Bag Filters and Rotary Feeders, and the assessee succeeded on the issue.

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