1997 (2) TMI 202

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....e manufacture of industrial valves, was clearing the goods on payment of duty having opted for invoice price procedure under Notification 120/75. Subsequently respondent filed refund claim for Rs. 1,635.53 stating that by an error the charges for second testing conducted at the option of the purchasers in the premises of the respondent's factory had been erroneously included in the assessable value for the purposes of payment of duty and that cost of such testing was not includible in the assessable value and duty was not payable on that account and therefore, excise duty paid has to be refunded. Assistant Collector rejected the claim but the same was allowed by the Collector (Appeals). 3. The material facts of the case are not in d....

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.... conducted though at the instance of the buyer and not second check or testing conducted at the instance of the buyer after initial check or testing by the manufacturer. 4. The respondent has relied on a few other decisions of the Tribunal. The earliest is the one in Shree Pipes Ltd. v. Collector of Central Excise - 1992 (59) E.L.T. 462. In that case the goods were sold after quality control by the manufacturer's own quality control department and after certifying by the ISI. Further testing was to be done by the DGS & D in the case of sale to PHED. Goods sold to other wholesaler dealers were not subjected to such additional testing. The additional testing was being done before the removal of the goods from the factory. It was held ....