2001 (3) TMI 171

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....Member (T)]. - The appellant manufactures malleable cast iron inserts. It is common ground that these inserts are only used to fasten the rails of a railway line to concrete sleepers, and that the ultimate user of these sleepers is the Indian Railways. The purchasers of these inserts are either the railway themselves or manufacturer of concrete sleepers, who sell them to the railways. It is also n....

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.... 2. It is the contention of Mr. C.J. Shah, the Manager of the appellant, that the testing and inspection by RITES is in addition to the testing and inspection that the appellant carries out on the goods, and the inspection by RITES is at the instance of the buyer. Although the appellant arranges the inspection, it recovers the charges from the buyer. The railways in turn reimburse the buyers. H....

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....tion Limited v. C.C.E. the Kolkata Bench of the Tribunal applied the ratio of Shree Pipes Limited v. C.C.E. to say that the charges payable to RITES for testing railway points and crossings manufactured by the appellant before it were not includable in the assessable value because these charges were incurred by the Railways. 4. It is settled law that charges paid for inspection or testing by a ....

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....he appellant. It is contended that the buyer is in turn reimbursed these charges by Railways. We have to keep in mind that the sleeper manufacturers sell, not inserts themselves, but sleepers, fitted with the inserts. As far as the appellant is concerned, it recovers, in every case, the charges for inspection from its buyers, the Railways or the sleeper manufacturers. The costs incurred for such t....