TaxTMI 
TaxTMI 
2014 (2) TMI 768
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....ed in the above appeals is the same, therefore, all of these are being disposed of by a common order. 3. In Appeal No. E/ 40/ 2006-DB, filed by the main appellant M/s Intellicon Private Limited, manufacturer of EPABX systems, the issue to be decided is whether the value of bought-out LCC (Line Circuit Card) supplied separately as traded goods, along with the EPABX systems, is includible in the assessable value of the EPABX systems for the purpose of charging central excise duty. 4. Shri Paritosh Gupta, learned advocate appearing on behalf of the appellants, argued that the main appellant had been selling the EPABX systems to its various customers with or without LCCs; that the purchase of LCCs by the customers of the EPABX from the ap....
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....y defended the orders passed by the Adjudicating authority and the first appellate authority 6. We have considered the arguments of both sides and perused the case records. 7. We note that in the present case most of the EPABX systems were sold without LCCs thereby proving that the EPABX without LCCs was fully manufactured goods and that the supply of LCCs (bought out item) was optional depending upon the requirement of the customers. The LCC is not fitted into the EPABX system at the time of clearance from the appellants factory, but the same is supplied separately from their trading unit situated within separately demarcated premises in the same plot B-20, GIDC Electronic Estate, Sector 25, Gandhinagar. In the matter of National Ra....
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....sories are fitted at the option of the customer then they cannot be described as essential or integral parts of the products to which they are affixed or attached and their cost is not includible in the value of the main product unless there are special provisions in the relevant tariff entry. Although matter was remanded by giving a direction to examine whether they were essential or optional ones, but it was held to exclude the cost of bought out items if they were optional. Similarly, in the present case also it was contended before us that battery and other bought out items were supplied to customers on a purely optional basis according to their individual requirements wherever specifically they placed orders for supply of such items. T....
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....ut-items and are dealt with by the appellants as part of their trading operations and not as part of their manufacturing activities. We have also perused a copy of the Appellate order passed by the Collector on 6.10.1986 in respect of the same appellants. 8. Taking into consideration all these facts and circumstances, we hold that for the purpose of assessment of the base stations and walkie talkies manufactured by the appellants, the value of cable which is not an integral part of the sets but is an optional accessory should not be included in the value of the sets. Accordingly we allow this appeal. 7.2 Similarly, in the case of Diamond Clock Manufacturing Co. Limited Vs. CCE, Pune (supra), the Tr....