TaxTMI 
TaxTMI 
2023 (12) TMI 780
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....ner, CGST & Central Excise, Kolkata-II Commissionerate, by which the demand of Central Excise Duty including AED, NCCD, Ed. Cess, and secondary and higher Ed. Cess amounting to Rs. 3,64,96,755/- was confirmed, for the period of 2010-2011 and 2014- 2015 by invoking the extended period of limitation. 2. The Appellant is engaged in the business of manufacturing of excisable goods namely parts of Industrial Furnaces, Handling Equipment System, etc. falling under Chapters Heading No 84 and 85 of the CETA, 1985. A show cause notice dated 22.05.2015 was issued to the Appellant with the allegations that they have evaded payment of duty on the full value of Industrial Furnaces, manufactured and cleared by them, by separately invoicing clearance o....
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....cise duty. 4. In support of their contention, the Appellant also relied on the decisions in the following cases : (i) NEYCER INDIA LTD. VS. COMMISSIONER OF CENTRAL EXCISE, TRICHY, IN THE CESTAT, SOUTH ZONAL BENCH, CHENNAI, 2005 (192) E.L.T. 620 (Tri.-Chennai). (ii) GODREJ & BOYCE MFG. CO. LTD. VS. CCE, DELHI-II, IN THE CESTAT SOUTH ZONAL BENCH, CHENNAI, MANU/CC/0019/2017 (iii) CHEEMA BOILERS LTD. VS. COMMR. OF. C. EX. & ST., CHANDIGARH, IN THE CESTAT, REGIONAL BENCH, CHANDIGARH, 2018 (362) E.L.T. 268 (Tri.- Chand.) 5. The Appellant submits that in their case the bought-out items are part of the immovable property being supplied as part of the composite contract entered with their customers. Thus, the q....
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....excise duty can be charged on the supply of such bought out items. 10. We observe that this view has been held by CESTAT, Ahmedabad in the case of TRANSRAIL LIGHTING LTD. vs. COMMISSIONER OF CENTRAL EXCISE AND SERVICE TAX, SILVASA,WEST ZONAL BENCH, AHEMDABAD (2023) 7 CENTAX 185 (Tri.Ahmd). The relevant part of the order is reproduced below: "6. It is also not even a case that appellant have provided the standard set of bought out items along with lattice mast but only in few cases it is supplied along with lattice mast. There are also cases where appellant are supplying only bought out items as a trading activity and not with lattice mast. This shows that the bought out items are optional for the customers to buy from the ....
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....ght out item to the customers, which is nothing but a trading activity. 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... "7. Likewise, there are so many judgments cited by the learned Counsel wherein it was consistently held that value of bought out items s....