TaxTMI 
TaxTMI 
1994 (12) TMI 236
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....he party submitted that whether installation and commissioning charges are to be included in the assessable value of Electronics Automatic Private Branch Exchange (EPABX) manufactured by the party is an issue to be considered in Appeal Nos. E/5714 and 5715/92A and in the remaining appeals in addition to the above issue, whether cost of cable and cabling charges is to be included in the assessable value, is also to be considered. 3. M/s. Radiant Electronics Ltd., Bhubaneshwar submitted a few price lists in part II declaring the prices of Electronics Automatic Private Branch Exchange (EPABX) manufactured by them for approval. Assistant Collector while finalising the approval of the price lists held that installation and charging of te....
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....rs the Department has come before us by way of these appeals. 4. In the Grounds of appeals the Department has taken the plea that the Collector (Appeals) has erred in his order in holding that the extra installation/commission charges are not relatable to the assessable goods, i.e., EPABX system. But on the scrutiny of the relevant price list alongwith contract papers in respect of the price List, it is noticed that the assessee has collected Rs. 150/ to Rs. 200/ per Telephone line of the EPABX. Therefore, the contention of the Collector (Appeals) that no extra installation charges were recovered from the customers where EPABX system were supplied, without Telephone connection is not correct. It was also contended that the assessees....
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....neers Ltd., - 1987 (28) E.L.T. 458 (Tribunal) (Para 5). 3.  I.A.E.C. Bokers Pvt. Ltd., v. C.C.E. - 1990 (48) E.L.T. 388 (Tribunal). 4.  Indian Hume Pipes Co. Ltd. v. C.C.E. - 1994 (70) E.L.T. 752 (Tribunal). As regards cabling charges, it was submitted that cost of cable and cable laying charges for laying of the bought out cables at the buyers' premises cannot be included in the assessable value of EPABX, since that activity was nothing to do with the manufacturing activity of that product. That installation of cables are only optional and are undertaken only at the instance of the customer. This is a work which does not enrich the value of the product since EPABX is one complete instrument and it does not need this addi....
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....ssioning charges are post-manufacturing expenses and this activity has no nexus with manufacturing and marketability and as such, they are not includible in the assessable value. This issue has been squarely covered by the decision in the case of Uptron Ltd., (Supra) as it was rightly pointed out by the learned Representative of the Party. Accordingly, we find that the Collector (Appeals) was right in directing the Assistant Collector to determine the assessable value of EPABX after deducting the charges realised in respect of installation/commission charges. As long as the installation and erection charges are separately realised, depending upon the type of work done by the assessee they cannot be added to the assessable value of goods, be....