2016 (12) TMI 220

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....ir office on stock transfer, on payment of excise duty. They had procured orders from various turn key contractors for supply of Fuse Switch Unit which comprises of metallic + lightening arrester + insulator. The lightening arrester and insulators are bought out from market and combining all the three commercial invoice is issued to the customers. The dispute in the present case relates to valuation of metallic manufactured and cleared by appellant to their office and thereafter to the buyers as a combined Fuse Switch Unit . The Department sought to determine the value of excisable item (metallic) by deducting purchase value of other two items (traded items) from the total value of Fuse Switch Unit . The respondent contended that there is a....

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....posited the central excise duty of Rs. 31,11,864/- alongwith interest on the differential value of the metallic transferred to their head office from where those have been sold. Their dispute is only on the point of disallowing of deduction from the assessable value on account of profit element on the bought out items sold by them from the head office onward in as much as deduction of landed cost of the same has already been considered while demanding the differential duty. I find that the adjudicating authority has not denied the admissibility of the deductions on account of bought out items sold from their head office to consignee s place but he has disallowed the deduction of profit element on the sole ground that the appellant has not s....