1991 (9) TMI 331

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....to the Tribunal also failed. The assessee is in revision. 2.. The assessing authority noticed that the specifications were furnished by the buyers and the engineers at Calcutta, designed the special coils and after manufacturing the same accordingly, sold the product. It was found that the manufacturing cost included the expenses incurred for drawing the design for the special coils. The assessing authority, on the basis of the material on the record, observed: "As for engineering design fees, these are collected from the buyers for designing the special coils according to their specifications and these charges are part and parcel of the total manufacturing cost. These are nothing but presale charges and are to be included in the tota....

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....ssee himself and were not given to the customers. It was also not disputed that the designs which were used only for the purpose of manufacture of the special coils were supplied to the customers. The findings of fact which are based on sufficient material, therefore, unmistakably show that while effecting the sales the assessee had collected the fee for designing the special coil and that fee was included in the total cost of the manufacture of the product. The mere fact that the assessee showed, in the invoice, "design and engineering fee" separately would not imply that the same was not included in the cost of manufacture so as to fall within the sale price of the goods sold to the customers. The Tribunal rightly rejected the plea rai....