2004 (3) TMI 272

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....[Order per : Jyoti Balasundaram, Member (J)]. - The facts of the case are that Emerson Network Power India Pvt. Ltd. are engaged in the manufacture of precision air-conditioning equipment and UPS systems cleared on payment of duty as complete machines. They also undertake installation and commissioning at the premises of their customers when the customers require them to do so. In the contract/pur....

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....following the apex court's decision in the case of Thermax Limited v. CCE - 1998 (99) E.L.T. 481. The present appeals relate to the period after 1-7-2000, i.e. after substitution of Section 4 of the Central Excise Act by new Section 4 introducing the definition of "transaction value". Show cause notices were issued to the appellants, proposing to include installation and commissioning charges, cos....

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..... The total demand confirmed on installation and commissioning charges is Rs. 1,01,23,715/- out of which Rs. 93,22,882/- is the demand on air-conditioning machines while the balance of Rs. 8,00,833/- is on UPS systems. We note that in the case of Carrier Aircon Ltd. v. CCE - 2003 (160) E.L.T. 419 (T) = 2003 (57) RLT 134 the Tribunal has held, while considering a contract for supply and installatio....

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....g machines at site. From the perusal of the list of bought-out items such as floor grills, piping, cabling etc., it would be seen that they are not parts of air-conditioning machines manufactured and cleared, but items required purely at site. Therefore, the appellants are right in contending that the cost of bought-out items cannot be included in the assessable value. 5. The appellants do not ....