2017 (9) TMI 1364

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nufacturers of Diesel Generating sets and are registered with Central Excise Department. On verification of records, it was noticed that appellant had collected additional charges over and above the amount included in the assessable value for determination of Central Excise duty. Department was of the view that appellant has to include such additional amounts collected also  for arriving at assessable value. A show cause notice dated 2.8.2004 raising such allegation was issued for the period 2002-2003 and after adjudication culminated in confirmation of duty of Rs. 1,30,184/- along with interest and imposed equal penalty besides penalty of Rs. 10,000/- under Rule 25 of Central Excise Rules 2002. In appeal, the Commissioner (Appeals) up....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is liable to central excise duty. To substantiate the same, they had produced Chartered Accountant's certificate. With reference to labour charges, he stated that the appellants had deducted such charges from the bills of M/s. MPP Technologies Pvt. Ltd. as the glass was not sent in a fitted condition, although as per the purchase order M/s. MPP Technologies Pvt. Ltd. were supposed to fit the glass and send the same. Therefore, they had engaged outside labourers to fit these glasses and paid the glass fitting charges. The same was deducted from M/s. MPP Technologies Pvt. Ltd. These glasses were fixed on the door acoustic and closures. That the amount was not received as consideration for supply of goods to M/s. MTP Technologies. The doc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....orrespondences issued to the department explaining the various amounts collected alleged in the show cause notice. He has substantiated his contentions along with certificates issued by Chartered Accountant also. In the case of testing charges, it is seen that the same is done at the customers' site. The testing is done by Indian Registrar of Shipping as per the statutory obligation and as hired by HPCL. In such cases, testing activity does not form part of manufacturing activity and therefore is not includable in the assessable value. The Tribunal in the case of Goyal M.G. Gases (P) Ltd. Vs. Commissioner - 2014 (309) ELT 727 (Tri.  Del.) held that cylinder testing charges are not includable in the assessable value. The view was ma....