2003 (5) TMI 157

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....cise, Delhi dated 7-1-2003 confirming a demand of Rs. 28,00,000/- and Rs. 65,77,852/- raised under two show cause notices dated 7-8-2001 and 5-4-2002. The adjudicating authority imposed a penalty of Rs. 14,00,000/- for the period 1-7-2000 to 31-3-2001 and Rs. 33,00,000/- for the period 1-4-2001 to 31-12-2001 under Rule 173Q of the Central Excise Rules, 1944. The assessee shall also be liable to interest in terms of Section 11AA, if it failed to pay the amounts within the period stipulated under the Section. 3. The issue that is raised in this appeal is whether installation and commissioning charges received by the appellant has to be included in the value of chillers and air handling units manufactured and cleared by the appellant's unit....

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....ed from its factory. The products manufactured by the appellant are capable of being marketed as such. Out of the total 410 number of transactions undertaken by the appellant during the relevant period 79% of the transaction, was mere supply transaction and only 18% involved composite orders for supply, installation and commissioning. That portion of the contract representing the work was separated and a sub-contractor was engaged to complete installation and commissioning work. Therefore, I according to the appellant the installation, testing and commissioning charges cannot be added to the assessable value of chillers/air handling units manufactured and cleared from its factory. 5.  We heard the learned DR who sought to support th....