TaxTMI 
TaxTMI 
1996 (10) TMI 274
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....lue of Electric Motors was not being included in the assessable value of Agitators and PD Pumps. Electric Motors were supplied along with Agitators or PD Pumps only at the request of buyers. Respondent was also clearing Agitators and PD Pumps without Electric Motors in cases where buyers did not require the latter. On 9-3-1984, Superintendent of Central Excise, Mahindra Owen Range issued two notices to respondent to show cause against demand of excise duty for the period 1-4-1981 to 31-12-1983 alleging that respondent had cleared 185 Electric Motors along with PD Pumps and with 23 Agitators without adding the value of the Electric Motors in the assessable value of PD Pumps or Agitators as the case may be. On 16-6-1984 and 9-7-1984 similar show cause notices for the period 1-1-1984 to 3-6-1984 had been issued. Respondent resisted the notices contending that Electric Motors not being parts of Agitators or PD Pumps and being bought out items supplied only at the option of buyers, the value of Electric Motors could not be added to the assessable value of such goods. It was also contended that a part of the claim was barred by time. Respondent was following invoice price procedure in re....
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....bunal) while dealing with the question whether the value of systems software supplied along with hardware (along with a complete computer system) was to be added to the assessable value of the latter, the Tribunal noticed that both were being supplied as per single order, the price was for the configuration, warranty included warranty for software and observed that customers wanted the whole system to be operated and accordingly placed order for the hardware and also systems software which was designed to control the operation of the hardware and make the configuration the computer system, the system software was different from the software used by the users for taking care of their specific requirements and which software is known as application software, that appellant's computer system was incomplete without appellant's system software and hence the system software was part of the complete system and formed integral part of the system. It was noticed that the system software was not purchased and was manufactured by the appellant. To the same effect is the decision in Uptron India Ltd. v. Collector of Central Excise, Allahabad - 1994 (73) E.L.T. 848 (Tribunal). The decisions do ....
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.... the decision in Jyoti Ltd. v. Union of India and another, 1979 (4) E.L.T. (J 546), the High Court of Gujarat held that Column assembly and discharge head assembly are accessories of Power Driven Pump (Essentially Bowl assembly) because these articles do not perform the essential function of converting mechanical energy of the impeller into kinetic energy of the liquid. This is because the main function of the Pump is to shift on liquid from one point to another and the function is performed by the bowl assembly. There was evidence to show that the appellant was supplying only Bowl assembly if the column assembly and dischargehead assembly are not required by the customers to be installed. It was also emphasised that this was how the persons in the trade understand. In Kosan Metal Products Pvt. Ltd. v. Union of India and others - 1981 (8) E.L.T. 725 (Bombay), it was found that trade circles recognised that valves and regulators though essential for the functioning of gas cylinders are distinct from cylinders, that many customers buy merely cylinders and do not buy valves and regulators and hence value of the latter cannot be included in the assessable value of the former. In Collec....
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....e. There can be units constituting pump and Electric Motor which may be motor pump set or Monoblock pump set which are different from mere pump or power-driven pump. Erstwhile T.I. 30A artificially indicates PD pumps to include such combined units. In common parlance and commercial sense, a pump is distinct from a unit combining pump and Electric Motor. Customers may have different needs. A customer may require his pump to be operated not with the help of an Electric Motor but to be operated with the help of Electric power generated elsewhere and supplied to him. Another customer may have an Electric Motor with him or may intend to buy an Electric Motor elsewhere and uses it to operate a newly purchased PD Pump. Yet another customer may require to buy both Electric Motor and PD Pump from the same source. There are distinct commercial and trade patterns prevailing in the market. Conversion of electric energy into mechanical energy is the function of motor and not pump. They are different entities functionally and commercially. Electric Motor cannot be regarded as a component or integral part of a pump unless the excisable product manufactured is a unit combining both articles or is ....