2000 (5) TMI 87

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....hartered Accountant, submitted that the appellants manufacture fire alarm panels, repeater panels, hooters, pill boxes, response indicators, etc.; that as their clearances were well within the exemption limit as provided under Notification No. 175/86, they were filing the declarations with the Department; that the Appellants were entering into 4 types of contract - (i)     Contract for supply of material only for fire alarm system or burglar alarm system; (ii)    Contract for supply of material and testing/commissioning of fire/burglar alarm system; (iii)   Contract for supply of materials along with installations and erection of the system and testing/commissioning; (iv)   Contract....

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....he value of the manufactured component parts of fire alarm system. He relied upon the decision in the case of CCE v. Radiant Electronics Ltd., 1996 (85) E.L.T. 102 (T) wherein it was held that installation and commissioning are not activities amounting to manufacture and value of bought out items supplied besides manufactured articles shall not be includible even if they are essential for the operation of manufactured goods provided they are not fitted or attached to the goods before clearance and no process is undertaken on the bought out items. He mentioned that fire alarm systems as such does not come into existence in the factory of the Appellants; that the finding of the Additional Collector that fire alarm system was made functional i....

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....pellant is accepted, excise duty as air-conditioner cannot be levied on split air-conditioner as therein also they are connected with wires; that a new goods as Fire Alarm System comes into existence. He relied upon the decision in the case of Koron Business Sytems Ltd. v. Union of India, 1992 (58) E.L.T. 48, wherein it was held that the value of timers and lense which is fitted into photocopier at site is to be included in the assessable value of the photocopier. Reliance was also placed on the decision in Sirpur Paper Mills Ltd. v. CCE, Hyderabad, 1998 (97) E.L.T. 3 (S.C.) wherein it was held that paper making machine assembled and erected at site mainly from bought out components is goods. He emphasised that as per the contract, the Appe....