2003 (5) TMI 308

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....y and those it purchased from others, and until 1-11-1988, included items that were necessary for the erection and installation of these machines. It is stated by the Counsel for the appellant that these dyeing machines, after being assembled out of these components, were tested for proper performance and thereafter dismantled for ease of transportation to the customer's premises where they were again assembled and erected. These machines are stated to be more than 10 metres in length. By its letter of 1-11-1988, it informed the jurisdictional Superintendent as follows : "For Jet Dyeing Plant/equipment we have been paying excise duty for despatches up to 22-8-1988 on all items manufactured by us, bought out items in assembled condition a....

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.... those parts which by themselves did not constitute a component part of the machine itself, but were only required for erection in the customer's premises. The cost of such parts is not to be included in the value according to settled law. It is no doubt settled law that the cost of charges subsequent to manufacture of an excisable commodity including those relating to erection or commissioning are not includible in the value of that commodity; accordingly the cost of those items which are not parts of such machine, but are only items required for setting up or installation would not be included. A reading of the appellant's letter however makes it amply clear that that is not what it says. It says, very clearly, that the cost of "bought ou....