2016 (2) TMI 779

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.... the Tribunal resulted in remand of the case to the first appellate authority to reconsider the issue of inclusion of cost of additional testing charges conducted at the request of customer and inclusion of cost of documentation charges. The Tribunal had remanded the matter with a specific direction to consider the judgement of the Tribunal in the case of Bhaskar Ispat Pvt Ltd. 2004 (167) ELT 189. 4. Learned Counsel appearing on behalf of the appellant submits that the first appellate authority has not considered the view of the larger bench in its proper perspective. He would then draw our attention to the said judgement and submit that the issue of inclusion of additional testing charges is settled in favour of the appellant. As regard....

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....eeds to be included in the assessable value by recording a finding that 16 tests are required to be conducted on the transformer in the appellants plant; were essential to market the transformer as per Indian standards 2026 and also on the statement of the technical personnel. We find that the findings recorded by the first appellate authority are incorrect. The statement of Deputy General Manager indicates that the tests which are required to be conducted on the Transformers, the statement also records that the appellant conducts all the tests and which are required for their own quality control tests to market the final products. We do not find anything in the statement which states that the appellant has recovered the cost of this mandat....

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....act that the additional testing is optional. It is also not disputed that the normal testing charges to the satisfaction of ISI which are necessary for making the goods marketable are included in the assessable value. 11. In this case, the duty is chargeable on the price which the manufacturer gets at the time and place of removal of goods. The appellant is not charging anything from the customers towards the additional testing conducted at their instance. The clause of the contract provides that the inspection charges shall be borne by the department but the same shall be paid initially by the contractor and shall be claimed in full in the respective bill for 98% payment through bank. Therefore, the manufacturer is not getting any....