1998 (7) TMI 174

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Excise and dropping the demand. 2. Respondent, engaged in the manufacture of Food Processors and other excisable goods was clearing food processors on payment of duty on the approved value. It appears that the price lists filed by the respondent did not mention sale of relay and rotary switches as spare parts or replacement of spare parts, supplied either free of cost or for consideration to wholesale dealers. These spare parts were not even mentioned in Column 6 of the classification list. Scrutiny of the RT-12s from April to July, 1993 and relevant invoices showed that value of such spare parts which were essential parts of food processors were not added in the value of the goods cleared, though, wherever price was charged, it was....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....period. The Department has no case that at the stage of clearing the food processors, the final product, duty had not been paid on the correct assessable value. The claim is that whenever replacement parts are supplied free of cost or spare parts are supplied at a price to wholesale dealers, the value of these parts should be included in the value of the food processors supplied earlier and differential duty paid. When the food processors were supplied, they were complete finished products and duty had been paid on the full value thereof, including those parts which had been used as the components of food processors. Subsequent supply of bought-out spare parts were either for replacement during warranty period or for use after warranty peri....