Assessable value excludes separate profit from erection and commissioning work at customers' premises for duty valuation.

Profit earned on erection and commissioning work at customers' premises, being post-manufacturing activity separate from the manufacture of telecom systems, was not part of the price of the manufactured goods for duty valuation. The excess of customer receipts over actual installation expenditure represented a distinct profit on commissioning work and could not be included in the assessable value. The issue was decided in favour of the assessee.

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Issues: Whether profit earned on erection and commissioning work at customers' premises was includible in the assessable value of the manufactured telecom systems for levy of duty.

Analysis: The disputed amount represented the excess of receipts from customers over the actual expenditure incurred on installation and commissioning. The relevant activity was treated as post-manufacturing in nature. Profit arising from such erection and commissioning work, separate from profit on the manufactured product, could not be treated as part of the price of the manufactured goods for valuation purposes.

Conclusion: Profit on erection and commissioning work was not includible in the assessable value and the issue was decided in favour of the assessee.

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