TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appellate Tribunal rules bought-out components not part of assessable value for duty liability</h1> The Appellate Tribunal CEGAT, New Delhi, upheld the appeal by M/s. Mihir Engineers (Pvt.) Ltd. (MEPL), setting aside the inclusion of the value of bought ... Valuation Issues:Inclusion of the value of bought out components in the assessable value for determining duty liability and classification of goods under the Central Excise Tariff.Analysis:1. Inclusion of Bought Out Components: The appeal by M/s. Mihir Engineers (Pvt.) Ltd. (MEPL) raised the issue of whether the value of bought out components used in manufacturing cooling towers and air washers should be included in the assessable value for determining duty liability. The Collector, Central Excise (Appeals) had decided that the value of all component parts, including bought out items, should be considered. MEPL argued that as they only manufactured FRP casings and basins, the value of bought out items should not be included. They cited relevant case laws to support their position.2. Classification Dispute: MEPL also contested the classification of goods under the Central Excise Tariff. The Collector, Central Excise (Appeals) had classified the FRP air washers under one sub-heading and the FRP casings and basins under another. MEPL had separate appeals pending on the classification of air washers and cooling towers. The issue of classification was not further contested during the hearing.3. Manufacturing Process: It was established that MEPL only manufactured FRP casings and basins, while the other components for cooling towers were bought out items. These bought out items were not processed or manufactured by MEPL but were supplied to customers for installation at the site. The Tribunal noted that the cooling towers were not assembled at MEPL's factory but at the buyer's site, becoming immovable property after installation.4. Legal Precedents: The Tribunal referred to various legal precedents to determine the inclusion of bought out components in the assessable value. Case laws highlighted that if bought out items were not processed or attached to goods before clearance, their value may not be included. The Tribunal emphasized that the bought out items in this case were not processed or attached to MEPL's manufactured goods, supporting MEPL's argument.5. Decision: After thorough consideration, the Tribunal upheld MEPL's appeal, setting aside the inclusion of the value of bought out components in the assessable value for duty liability. The Tribunal found that the bought out items were not processed or attached to MEPL's goods, aligning with legal precedents. The issue of classification was not further discussed, and the appeal was allowed accordingly.This detailed analysis of the judgment from the Appellate Tribunal CEGAT, New Delhi, showcases the key issues, arguments presented, legal precedents cited, and the final decision rendered by the Tribunal.
TaxTMI 
TaxTMI 
