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2017 (7) TMI 435

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.... The appellants were issued a Show cause notice alleging the following:- i) Non-inclusion of value of free supplied raw materials used in the exempted goods namely, Windmill Tower. ii) Under valuation of Paint Shop fabricated by them by not including the charges of design and drawings. iii) Improper valuation in respect of Coal Ship Loader supplied to Halida Port Trust by not including System Engineering charges. 2.1 On behalf of the appellant, Ld. Counsel Shri S. Muthu Venkataraman, submitted that regarding the first issue since the contract is in the nature of work order and no actual sale is involved the appellant had then relied upon the judgment in the case of Ballarpur Industries Ltd. That later vide judgment reported in 2007 (21....

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.... the value of Coal Ship Loader manufactured and cleared by them. He submitted that the Show cause notice alleges that the System Engineering being essential for Coal ship loader, the value of system engineering has to be included in the assessable value of Coal Ship Loader. The ld. Counsel explains that there is a design element involved in the manufacture of ship loaders and design portion has already formed part of excisable value and duties have been discharged. Whenever designs relatable to the manufacture of machinery is involved it is already included and duties discharged. That the product design which commercially is exigible to excise duty has already been considered in the price of the Coal Ship Loader and therefore the System Eng....