TaxTMI 
TaxTMI 
2002 (1) TMI 117
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....arihar. They accepted order to develop, fully engineering machine set ups and manufacture the said machines as per the drawings, patterns, jigs, fixtures and tools, etc. which they would develop on separate orders to be negotiated and placed on a principal to principal basis. This agreement dated 10-5-91 was entered into with ITC. The agreement related the preparation of drawings, patterns, jigs, fixtures and tooling necessary for manufacture of certain machines, which ITC requires and would place orders separately, once they approve the designs. This agreement stipulated the supply of a prototype machine by ITC to MKL to develop such drawings, patterns, jigs, fixtures and tools and it specifies that such items will be prepared by MKL, yet ....
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....the specifications, the prototype and the drawings and patterns prepared by it and approved by the company in writing in terms of this agreement; as detailed in Schedule B hereto. c. In order to ensure that MKL manufactures the machines strictly in accordance with the specifications, the prototype and drawings and patterns approved by the company in writing, the Company's representatives will have the liberty of examining the machines manufactured by MKL during the process of manufacturing of such machines and also after the manufacture of the machines is completed, before or after the delivery of machines by MKL to the company." Part IV at Page 6 is for the price of the machines and states : ....
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....is mentioned in the contract itself or specified later as per the terms of contract. Hence the nexus between the amount of Rs. 43 lakhs received in respect of design and drawings and the machines supplied stands proved and the amount has to be treated as additional consideration for supply of the machines under consideration. Hence the differential duty on the amount liable to be paid by M/s. MKL. The reliance of M/s. MKL on the judgment of the CEGAT in the case of M/s. IAEC Brokers Pvt. Ltd. is misplaced and as against the same is in favour of the department in respect of drawings, designing and technical specification. The contention of M/s. MKL that there is no contract for the manufacture of machinery in the agreement dated 10-5-91 is n....
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.... nature of advance and interest charges on the same would be liable to be included in the assessable value if the demand is to be paid at a later date. 13. As regards limitation aspect the arguments of M/s. MKL are not tenable. M/s. MKL have clearly suppressed the facts of collection of Rs. 43 lakhs towards design and development charges. They have not informed the department about the contract (agreement) at any time. Their claim that it is a bona fide omission is not acceptable inasmuch as the agreement dated 10-5-91 clearly specified the terms of Excise duty as Part VIII with respect to the manufacture of the machines in terms of the said agreement." And he confirms the demand of duty of Rs. 7,41,750/- under proviso to Sectio....
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....hout covering to a specific finding that such prices in these individual orders depressed, because of supply of these goods, can therefore not be upheld as it is not as per law. (b) The agreements, i.e. the written orders for the supply of four machines as per the gate passes in this case were not relied upon in the original proceedings nor were they produced before us by Revenue or by the appellants. Therefore it cannot be determined whether the prices in those subsequent orders/agreements, were influenced or otherwise. Each clearance is an assessment based on a separate contracts. A contract price would normally be the value for assessable goods. The Basic Excise Manual of Departmental Instructions on Excisable ....