TaxTMI 
TaxTMI 
2006 (9) TMI 3
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....ved in the appeals were (a) the valuation of "packaged type Air-Conditioner" and (b) whether the extended period of limitation is invokable in demanding duty. The basic facts in a nutshell are as follows:- 2. The respondent is engaged inter alia in the manufacture of, inter alia, package type Air-Conditioners falling under Tariff Item No. 29-A of the erstwhile Tariff and Chapter heading No. 84.15 of the Central Excise Tariff Act, 1985 (in short the 'Tariff Act'). According to the appellant, the respondent was selling the air-conditioners by assembling the same at site through orders procured from various authorities by way of Tenders/Contracts. The Contracts/Tenders entered into by the assessee are broadly divided into nine components: 1....
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.... respect of first show cause notice. For the subsequent show cause notice a duty demand of Rs. 2,79,169/- was confirmed and penalty of Rs. 30,000/- was imposed. Respondent preferred appeals before CEGAT. By a common order, CEGAT remanded the matter to the Commissioner for fresh consideration with regard to valuation, rate of duty and limitation. On fresh adjudication on 31-3-1997 Commissioner noted that the respondent had wrongly filed the price list in Part I on the issue of valuation. Out of nine items, in respect of two items there was no dispute. Commissioner excluded the valuation of the civil work from the assessable value. Demand of Rs. 9,34,179/- for the c period was confirmed and penalty of Es. 2,00,000/- was imposed under Rules 9(....
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.... of the present case. CEGAT even did not analyse the factual position and there was no discussion as to why the articles covered under various items were not to be reckoned to work at out the assessable value. It has also not been decided as to which of the items can be termed as "assessories" and which can be termed as "components". 6. Learned counsel for the respondent on the other hand submitted that the CEGAT had taken into account the broad features and had rightly decided that the valuation of the items in question were to be excluded. It was further submitted that the CEGAT's view about limitation is not correct. 7. In Black's Law Dictionary (5th Edn. p. 13) 'accessory' has been defined as anything which is joined to another thing ....
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.... the effective use of the motor vehicle. [See Mehra Brothers v. Joint Commercial Officer, Madras, '1991 (1) SCC 514}. 8. In the absence of any definition of the term "component parts" it is permissible to refer to the dictionary meaning of the word "component". According to the Webster Comprehensive Dictionary, International Edition the word 'component" inter alia means a constituent part. [See Star Paper Mills Ltd. v. Collector of Central Excise, 21989 (4) SCC 724]. 9. By way of example, a spare part is a replacement part to replace a damaged or worn-out component but it is, nevertheless, a component part. In such cases, "Component" was the genus and 'spare' was a species thereof; it was a component which was used for replacement. [See H....