2000 (9) TMI 122

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....; [Order per : Justice K.Sreedharan, President]. - This appeal filed in 1995 happened to be kept pending for securing clearance from the Committee on disputes. Committee on Disputes have already allowed the appellant to pursue the matter before the Tribunal. Today, the matter came up alongwith the petition praying for stay of operation of the impugned order. In other words, the prayer of the ap....

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....vered by that notice was March 1989 to February 1994. The case put forth in the show cause notice was that the assessee artificially bifurcated a contract for the sale of the goods manufactured by them into two - one for supply of the goods and the other for supervision of erection and commissioning. According to the department, the pumps and compressors designed and manufactured by the assessee b....

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.... engaging independent contractors. The work undertaken by the said contractors was supervised by the company so that the pumps and compressors worked properly and gave maximum utility to the customers. The supervision of such erection or commissioning of the machine was not part of the manufacturing process but was only a post-manufacturing activity undertaken by the assessee. The specific content....

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....charges realised by the assessee in such cases can, in no circumstance, be taken as cost of manufacture of the pump or compressor. It is a post-manufacturing activity. The charges realised by the assessee on such supervision can, under no circumstance, go to enhance the value of the goods for the purpose of levying duty under the Excise Law. Since the supervision of the installation and commission....