2010 (12) TMI 1021

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....y on the respondent and penalty of Rs. 25,000/- on the Director of the respondent unit. The issue involved in these appeals is common, therefore, they are taken up for disposal together. 3. Briefly stated facts of the case are that the respondents are engaged in the manufacture of Electronic Relays falling under Ch. 8536.9090, Soil Resistivity Meter under Ch. 9030.9090, Relay Testing Unit Ch. 8543.8910, Digital Display Ch. 8472 00 00. Current Injection Unit Ch. 8543 90 00 of the First Schedule of the Central Excise Tariff Act, 1985. The respondents were clearing the Feeder Control & Communication Module from the factory to the customer's site. The said Feeder Control and Communication Module along with the computer systems and requisi....

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....h digital or along input/output modules, various types of machines. Therefore, the erection and commissioning charges and value of bought out items are includable in the assessable value. In support, they placed reliance on point No. 10 of Board's Circular No. 643/34/2002-CX., dated 1-7-2000. Shri Sunil Kulkarni, Director, who is in-charge of Central Excise matters has deliberately suppressed the facts to the department for issuing separate "A" & "S" series of Commercial invoices for collecting the erection and commissioning charges as well as value of bought out items. Therefore, he is liable for penalty. 5. The contention of the respondent is that the erection and commissioning charges are not includable in the assessable value as p....

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....rd's aforesaid circular. A portion of the serial No. 10 provides that parts/components of a generator are brought to a site and the generator erected/installed and commissioned at the site then, the generator being an excisable commodity, the cost of erection, installation and commissioning charges would be included in its assessable value. In other words if the 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. The department has also submitted that from the literature of the product it can be seen that the FCCM Modules as well as the computers installed at customers site are not fixed to the earth and a....