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TaxTMI 
TaxTMI 
TaxTMI 
2018 (4) TMI 902
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....ite. The case of the department is that nuts, bolts and other accessories supplied directly to the site, the value of the same should be included in the value of the towers or in other words whether the said bought out items are liable for duty. Both the lower authorities have consistently held that the value of bought out items supplied directly to the site of customer is not liable to excise duty. Accordingly, the proceedings were dropped. Being aggrieved by the impugned order, the Revenue filed the present appeal. 2. Shri A.B. Kulgod, learned Asstt. Commissioner (AR) appearing on behalf of the Revenue submits that the assessee has entered into a contract with Maharashtra State Electricity Board (MSEB) and Rajasthan Rajya vidyt Prasaran ....
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....s were directly supplied to the site which is used for erection and installation of the transmission towers. Therefore, the said goods do not take part in or in relation to manufacture of transmission towers. These accessories are required only for erection, installation of the transmission towers. The erection installation activity is separate part from the manufacturing of transmission towers. Therefore, the manufacturing activity gets completed when the transmission towers are manufactured and cleared from the factory. Any additional part being not a part of manufacturing activity cannot be considered as part of the manufacturing of transmission towers. Hence, its value should not be included in the assessable value of transmission tow....
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....vity. Therefore, the same cannot be considered as extra consideration towards the manufacture of excisable goods produced by the respondent. 4.1 On going through the orders passed by both the lower authorities, we observe that both the authorities have correctly considered the issue in its entirety and analyzed the relevant provisions and settled case law and came to the conclusion that the value of nuts bolts etc. is not includible in the assessable value of the transmission line towers manufactured by the respondent. The findings of the Commissioner (Appeals) in the impugned order are as under: - "51. I have carefully gone through the case records and submissions made by the Appellant/Respondent both written and oral. The Appellant rece....
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....nufactured and sold by the manufacturer. Obviously, the contracts provide for the price of the transmission line towers manufactured by the respondent and it is only this price which could be termed as the price actually paid for the transmission line towers manufactured by the respondent. The said definition cannot be applied to the cost of the goods which are not manufactured by the respondent. Admittedly the nuts and bolts and the other accessories are neither manufactured by the respondent, nor are those cleared from its factory. The ground raised in the appeal by the Department is an attempt to stretch the definition of Transaction value to an illogical extent. 54. In so far as the reliance place on the decision of Vishwa Industrial C....
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.... No. 1 05/80-CE _ Section 4 of the Central Excise and Salt Act, 1944 (Para 9)" 56. The case of Steel Crafts is misplaced since it was a case of includibility of the cost of the items which were fitted to the body of the trailer at the time of its clearance from the factory. The judgement of the Hon'ble Supreme Court in the case of Texmaco Ltd., was rendered in the' context of valuation of wagon-bodies mounted on "wheel sets". Here again the case is totally different than those involved in respondent's case. The ration of the decision of Commissioner of Central Excise Pune-I V s. Thermax Bobcock & Wilcox Ltd., 2005(182) ELT -336 (Tri. Mumbai) in which it was held that the value of bought out items received at site and used in er....