TaxTMI 
TaxTMI 
2013 (12) TMI 699
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....noticed that the appellant was clearing Three Wheeler of Model 601 by including the value of Rear Visual Barrier, Jack Assembly and Carpet for the purpose of payment of excise duty and were supplying the same along with Three Wheeler. However, in respect of other models of Three Wheelers, the appellant did not supply the accessories namely, Rear Visual Barrier, Jack Assembly and Carpet from the unit manufacturing the Three Wheelers. However, these accessories were supplied from the Spare Parts Division situated outside the factory to the dealers directly and the dealers while selling the Three Wheelers supplied these accessories to the buyers. It was further noticed that in respect of exports of these three wheelers, the appellant supplied ....
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....terest thereon and also proposing to impose penalties under the provisions of Central Excise Act, 1944. The appellant contested the notice on the ground that these are not parts of vehicles supplied but are only optional accessories and, therefore, the question of including their value in the assessable value of the Three Wheelers does not arise. However, this contention of the appellant was not accepted and the duty demand of Rs.3,57,81,567/- was confirmed under the provisions of Section 11A of the Central Excise Act, 1944 along with interest under Section 11AB ibid. An amount of Rs.2,61,61,330/-, paid under protest, was ordered to be adjusted against the duty demand and a penalty of Rs.3,57,81,567/- was imposed under Section 11AC of the A....
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....are parts division to the dealers and there is no one to one relation between the sale of three wheelers and the optional accessories and wherever the buyer of the vehicle opts for these accessories, the dealers provide the same. Since the Three Wheelers is cleared from their factor without these accessories, the question of inclusion of the value of the accessories in the assessable value of the three wheeler does not arise. He relies on the decision of Hon'ble High Court of Gujarat in the case of Amkar Engg. Works -1979 ELT (J145), where a similar issue arose and the Hon'ble High Court held that accessories cannot be considered as components or integral part of the trailer; therefore, the value of accessories cannot form part of the asses....
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....ch as jack assembly, rear visual barrier and carpets cannot be included in the value of the three wheelers supplied, since these are not components or parts of the three wheelers and are only optional accessories. Accordingly, it is pleaded that the appeal be allowed. 4. The learned Addl. Commissioner (AR) appearing for the Revenue, on the other hand, reiterates the findings of the adjudicating authority. He contends that in respect of Three Wheeler Model 601, the appellant himself is including the value of these optional accessories in the assessable value of three wheelers supplied. However, for other models, these values are not included. Further, on export of these models, the appellant includes the value of the optional accessories al....