TaxTMI 
TaxTMI 
2023 (8) TMI 8
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.... personal Computer, Printer, UPS, Stabilizer and Air-Conditioner from market but they were not including the value of these bought out items for the purpose of payment of Central Excise duty. Accordingly, Central Excise duty amounting to Rs.2,07,264/-, including Education Cess was demanded from the Appellant for the period January 2006 to February 2006. The Notice was adjudicated vide Order-in-Original dated 20.08.2009, wherein the duty demanded was confirmed along with interest and equal amount of duty as penalty. On appeal, the demands were confirmed vide Order-in-Appeal dated 21.03.2011. Aggrieved against the impugned order, the Appellant filed the present appeal. 2. In their submissions, the Appellant stated that they have sent t....
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....ey were not essential parts, as they were not required for performance of the main function ie, weighment of goods/railway wagons. The Weigh Bridge System supplied by the Appellant can run smoothly without these items, as controller 'DISOMAT-C' is sufficient for taking weighment of the system 7. Transaction value" as defined under Section 4(3) (d) of the Central Excise Act, 1944, means that the price actually paid or payable for the goods when sold and includes in addition to the amount charged as price any amount that the buyer is liable to pay, to or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or any time thereafter. We observe that the value of the bought out items ar....
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....n of the Hon'ble Supreme Court in its judgment in the case of Union of India v. Koron Business Systems Ltd. - 1997 (93) E.L.T. 663 which upheld the judgment of the Bombay High Court. In that case the Bombay High Court held that plates and black shields are required for working of the photocopier but that by no stretch of imagination lead to the conclusion that plates and black shields are part and parcel of the machine. It was held that the value of plates and black shields cannot be included in the value of the photocopiers. Ld. Advocate argued that no doubt that the above-mentioned fittings are required to make the cistern functional but on account of that they cannot be called as parts of these cistern. The Tribunal in the case of EID Pa....
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....d. : 2015 (320) E.L.T. 28 (S.C.), observed that the value of the bought out items cannot be included in the assessable value of own manufactured goods under Section 4 of the Central Excise Act, 1944. In the instant case, it is admitted position that the assessee supplied the bought out items to the buyers only to ask for. In such a situation, the assessee buys the aforesaid components/items from the market and supplied to the buyers on their option. When it is so, then we find no reason to sustain the impugned order and the same is hereby set aside. 11. In the result, the appeal filed by the appellant is allowed." 9.3, In the case of Kerala State Development Corporation Vs Commissioner of Central Excise, reported in 2008(224)ELT 88(T),....