2016 (9) TMI 1173

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....10.2015, passed by the Commissioner of Central Excise, Noida-II, by which the duty have been demanded on the freight incurred in transportation of goods manufactured, post clearance from the factory to the place or site of the buyers. 2. The brief facts are that the show-cause-notice dated 08.08.2014, was issued for the extended period from 2009-10 to 2013-14, alleging that the Revenue Audit pointed out that as per the relevant purchase order in invoices, the appellant have supplied their goods namely, Air Handling Unit, in complete knock-down condition to the premises of buyer. Appellants have assembled the AHU, and after that they have. installed the Unit at the buyers premises and the work of installation is outsourced by the appellan....

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....r not. 4. The facts, which are not in dispute, is that the appellant manufactured most of the components of the AHU. Some components are bought and brought in the factory and used in the manufacture of AHU, which is cleared on payment of duty. The learned Counsel for the appellants has taken us through some of the purchase orders, wherein one purchase order of Gland Pharma Ltd. dated 06.12.2012, the terms of delivery is mentioned as F.O.R. at their site. Further, installation is free of cost. In the case of Purchase Order dated 27.03.2012 of Nestle in the terms and conditions, it is mentioned "all materials will be subject to the buyer's inspection and approval before acceptance. The Supplier hereby warrants the merchandise and workm....

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....39;ble Supreme Court in the case of the assessee, manufacturing and clearing Plastic Machinery and installing and commissioning it at the factory sites of their customers, and most of the components of the machineries were manufactured by them, including some components, bought from market and brought to their factory. All such components were taken in unassembled form for the purpose of convenient transportation to the site of their customers, where such machinery is assembled and installed. The assessee has been supplying the machinery in unassembled form and was assembling and not installing at buyer's place on contract basis and recovering the contract price by raising invoice. The Revenue wanted to add certain cost incurred towards....