2004 (5) TMI 358

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..... Shri Mayur Shah, Advocate, for the Respondent. [Order per : Justice K.K. Usha, President]. - This is an appeal at the instance of the Revenue challenging the orders passed by the Commissioner of Central Excise, Raipur dated 6-2-2002. The issue that has come up for consideration is whether testing charges incurred in respect of prototype transmission towers are to be added to the assessa....

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....ctured by it. Since it is a special testing done at the instance of the customers the charges incurred is not includible in the assessable value of the product cleared by the assessee. The allegation of suppression of fact was also denied. 2. The adjudicating authority accepted the contention raised by the assessee. Reliance was placed on the ratio of the decision of this Tribunal in KEC I....

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....that are manufactured for actual execution of the contract entered into between the appellants and their customers and the charges incurred for conducting such tests are paid by the customers in terms of the contract. We are, therefore, of the view that all charges recovered by the appellants from their customers on account of the testing of the prototype towers which in terms of the contract prec....

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....ove case the adjudicating authority as well as the appellate authority took the view that the goods were subjected to testing after they were cleared on payment of duty and that since the testing was destructive testing, the goods subjected to the testing ceased to exist after such testing. Secondly, it was held that the transmission towers on erection becomes immovable property and hence cannot b....