1998 (5) TMI 190

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....or the Respondents. [Order per : K.S. Venkataramani, Vice President]. - The appellants manufacture I.C. engines and components thereof falling under Chapter 84 of Central Excise Tariff Act. They are availing Modvat credit of duty on the inputs used in the manufacture of the final products. M/s. Poona Shrims, an SSI unit, supplied them components of I.C. engines valued at Rs. 9310. In the releva....

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....er by his order dated 3-8-1988 disallowing the credit of Rs. 1,20,000/- and also imposing penalty of Rs. 5,000/- on the appellants. Commissioner of Central Excise (Appeals) in the impugned order has upheld the Asstt. Commissioner's order. It has been observed by that authority that the outlay on design and development charges is unbelievably disproportionate to both the resources at the command of....

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....arges among the goods supplied, and the charges are not relatable to the items covered by the gate pass only. 4. On considering the rival submissions, it is seen that it is now the settled position in law that design and development charges are to be included in the assessable value of excisable goods under Section 4 of Central Excise Act. The appellants have also explained in the grounds of....