TaxTMI 
TaxTMI 
TaxTMI 
1997 (5) TMI 240
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.... various kinds of drilling and mining machinery, one of them being "ICM-15M Crawlair Drill". On 30-12-1987, a lorry MCU 5857 was intercepted and was found carrying one Crawlair Drill manufactured by the appellant. Accompanying documents included two invoices, one for crawlair drill and the other for `drifter'. Accompanying gate pass showed payment of duty only on the value of drill in which the value of drifter had not been included and no excise duty had been paid on the value of the drifter since appellant had purchased the item from importer. Executives of the company were, in due course, questioned and their statements recorded and further investigation was conducted. It was found that during the period from 11-5-1985 to 29-12-1987 ther....
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....tate the drifter or rotary head to perform its function of drilling and to move the same from one place to another as desired and drill is a complete product by itself without drifter and drifter therefore cannot be regarded as an integral or essential part of drill. All buyers of drill do not purchase drifter and therefore drifter can be regarded only as an optional accessory. The mere fact that an optional accessory is fitted to the equipment before clearance will not render its value liable to be included in the assessable value of the drill. These contentions are rebutted on behalf of the Department by Shri K. Srivastava, SDR. 6. In the reply to the show cause notice regarding function of Crawlair Drills it was stated as follows :....
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.... mm (4-1/8") to 115 mm (4-1/2") dia holes with piston air motor driven rotary head of adequate torque and 0-60 rpm rotation speed." Under heading "Optionals" it is stated - "Water Injection System". There is similar specification in the literature of CM-341. The following are described as `Optionals' : Water Injection System 2-Rod, 2-7/8" OD Manual rod changer Conversion kit from DHD for Drifter package and vice versa. 8. From the submissions made in reply to the show cause notice and the literature placed before us there can be no doubt that the appellant manufactures Crawlair Drill models LM-100 and CM-341. The specifications contemplate alternatively Drifter Drilling or DHD Drilling (rotary head drilling). The sale pattern of t....