1998 (4) TMI 134

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....ts of the customers. The manufacturing process includes pre and post manufacturing steps. Since Boiler has to be manufactured according to the requirements of the customers, the pre-manufacturing process includes the inspection of site where the Boiler is to be installed and the making of its drawings and designs etc. for which the appellants charge and had all along charged separately from its customers. The post-manufacturing steps include the installation, erection and commissioning of the Boiler at the site for which also the appellants have charged specific amounts from their customers under separate invoices. 3.Three separate show cause notices dated December 26, 1983; February 2, 1984 and July 30, 1984 were issued to the appellant....

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....esigning and engineering charges were includible in the value of the goods but erection and commissioning charges were in the nature of post-manufacturing expenses and cannot be treated as part of the assessable value of the goods. 6.The Revenue, thereafter, filed three appeals before the Tribunal which have been allowed by the impugned judgment. 7.There was another appeal before the Tribunal which was filed against the show cause notice dated August 4, 1987 issued by the Collector of Central Excise to the appellants for the period from April, 1982 to May, 1987 alleging that the appellants had not included and reflected in the invoice prices, the amounts separately recovered in separate invoices from their customers directly relating ....

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....d its parts are manufactured at the appellants' factory. Consequently, the expenditure incurred in drawing and design which is separately charged by the appellants from the customers can, it is conceded, be legally included in the assessable value of the goods. 9.The only question, therefore, with which we are left in these appeals is whether the erection and commissioning charges for which the appellants had separately charged from its customers could be legally included in the assessable value of the goods, namely, the Boiler manufactured and supplied by the appellants. Or, to put it differently, whether the installation and commissioning charges are exigible to excise duty? This controversy stands concluded by two decisions of this Co....