Assessable value of PVC pipes excludes coupler cost when couplers form part of the composite supply and are not separately priced.

Couplers supplied with PVC pipes to State Governments were held not includible in the assessable value of the pipes where the supply orders covered pipes with the requisite couplers, the challans showed composite supply, and there was no evidence of separate sale or extra consideration for the couplers. Couplers cleared independently as spares were already duty paid, so their cost could not be added again for duty computation. The demand based on inclusion of coupler cost in the assessable value was set aside and the assessee received consequential relief.

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Issues: Whether the cost of couplers supplied along with PVC pipes to State Governments was includible in the assessable value of the pipes for duty purposes.

Analysis: The supply orders covered PVC pipes with the requisite quantity of couplers, and the challans reflected supply of pipes including couplers. No evidence showed that couplers were sold separately along with the pipes or that any extra consideration was received for them. Duty had already been paid where couplers were cleared independently as spares.

Conclusion: The cost of couplers was not liable to be added to the cost of PVC pipes, and the demand based on such inclusion could not be sustained. The appeal was allowed with consequential relief to the assessee.

Final Conclusion: The duty demand based on inclusion of coupler cost in the assessable value of PVC pipes was set aside.

Ratio Decidendi: Only goods actually sold as part of the contract consideration and not separately valued or independently dutiable can be included in the assessable value for duty computation.

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