2016 (12) TMI 653

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....ant Shri H.M. Dixit, Asstt. Commissioner (A.R.) for the respondent Per: C J Mathew: The dispute in this appeal of M/s Autopack Machines Pvt Ltd is the inclusion of 'erection, installation and commissioning' charges in the assessable value of industrial packing machines manufactured the appellant and cleared on payment of duty in 'completely knocked down' (CKD) condition to the site of the....

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.... res integra. In almost identical circumstances, the Tribunal, in Commissioner of Central Excise, Pune v.  Nichrome Metal Works P. Ltd [2001 (135) ELT 429 (Tri-Mumbai)], has held that such charges being paid on account of services offered after the manufacture and clearance of the product is not liable to be included in the assessable value. In Commissioner of Central Excise, Mumbai v. Offici....

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....pex Court had held in the case of Thermax Ltd. (supra) that payments made towards erection and commissioning cannot form part of assessable value of excisable goods. Of course this decision was prior to the introduction of the concept of transaction value as introduced from 1-7-2000. The definition of "transaction value" in Section 4(3)(d) is reproduced below: ""transaction value" means t....

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.... Thermax Ltd. and include expenses for the service of erection and commissioning in the value of excisable goods. Excise duty is chargeable at the stage of removal of goods as it is at the stage of removal and not after its attachment to the earth. In fact, the evolution of law by imposing service tax on erection and commissioning under Finance Act, 1994 with effect from 1-7-2003 supports this vie....