2002 (8) TMI 626

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....rajan, Advocates, for the Appellant. Shri S.V. Parlekar, DR, for the Respondent. [Order per : Jyoti Balasundaram, Member (J)]. - The above application for waiver of pre-deposit of duty and penalty arises out of the order of the Commissioner of Central Excise (Appeals), Mumbai, who has confirmed duty demand of Rs. 1,14,61,836/- and imposed penalty of Rs. 20,00,000/- upon the applicants her....

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....tion and commissioning charges and cost of boughtout items are covered by the definition of 'transaction value' as contained in Sec. 4(3)(d) of the Central Excise Act as amended in July, 2000, which reads as under :- '"transaction value" means the price actually paid or payable for the goods, when sold, and includes in addition to the amount charged as price, any amount that the buyer is liable....

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....e Revenue. 4. We find that prima facie, installation and commissioning charges are not includible in the assessable value of excisable goods manufactured by the applicants herein, in the light of clarification contained in CBEC Circular No. 643/34/2002-CX., dated 1-7-2002, which states as under :- "If the final product is not excisable, the question of including these charges in the ass....

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.... expenditure on erection, installation and commissioning has been incurred to bring into existence any excisable goods, these charges would be included in the assessable value of the goods. If these costs are incurred to bring into existence some immovable property, they will not be included in the assessable value of such resultant property." 5. For the same reason, the duty demand on the....