1987 (2) TMI 179

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.... no fees are required to be paid by the department. The two appeals seek restoration of the following two demands for differential central excise duty :- 1. Demand for Rs. 1,10,620.96. This demand has been set aside by the Collector (Appeals) on the ground of time bar ; (2) The demand for Rs. 49,431.41. This demand was included in the show cause notice. In his Order-in-Original, the Assistant Collector upheld the merits of this demand but inadvertently he omitted to confirm the demand specifically in the final Order portion. Though the department had filed a separate appeal before the , Collector (Appeals) for restoration of this demand Collector (Appeals) did not advert to it but set aside the department's appeal on the ground that h....

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....s for the machinery at the customer's premises. It is the case of the department that the demands were not time barred since the respondents suppressed the fact of the two separate invoices raised by them for consultancy charges and erection and service charges and hence the extended time limit of five years was applicable. The respondents pleaded that they were guided by the interpretation of Section 4 generally adopted before the Supreme Court judgment in. the case of Bombay Tyre International became available in May, 1983 [1983 E.L.T. 1986 (S.C.)] and hence there was no suppression on their part. 3. We have carefully considered the matter. The central excise duty is a tax on goods and not on services. However, we find that the co....

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.... are required to pay it in so far as the demand relates to drawing, designing and technical specification costs. Since the break-up of these costs is not available to us, the Assistant Collector shall quantify the amount of the demand in so far as it relates to drawing, designing and technical specification costs recovered by the respondents. It would be open to him to call upon the respondents to disclose the drawing, designing and technical specification costs actually recovered on an affidavit, supported by a certificate from a Chartered Accountant. Where, however, no duty was recovered for the machines because of such machines having been exported out of India, the demand on account of drawing, designing and technical specification woul....