TaxTMI 
TaxTMI 
2026 (9) TMI 1666
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....2016. The present matter relates to demand of central excise duty on additional amount collected towards "testing charges" for the period April-2016 to June-2017. On the basis of data given by the appellant vide their letter dated 12.04.2017 and 28.09.2017, the officers found that the appellant had collected testing charges of Rs.17,38,331/- from M/s. Power Grid Corporation of India Ltd on which central excise duty of Rs.2,17,291/- was payable. 1.1 The appellant were therefore issued a show cause notice dated 26.03.2018 proposing demand of central excise of Rs.2,17,291/- under Section 11A along with interest under Section 11 AA of the Central Excise Act, 1944 and penalty under Section 11AC and Rule 25 of the Central Excise Rules, 2002. The show cause notice was decided by the Adjudicating Authority vide order dated 30.05.2019, wherein, he confirmed the above demand of central excise duty along with interest and also imposed an equal amount of penalty under Rule 25 of the Central Excise Rules, 2002. Aggrieved with this order, the appellant filed appeal before the Commissioner (Appeal) who vide impugned order dated 30.08.2019 rejected their appeal and upheld the order of the lower....
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....e assessable value of goods. Expenses originally incurred being reimbursed by clients. * CESTAT New Delhi in the case of Paxma Axle & Springs (P) Ltd Vs. CCE, New Delhi reported at 2000 (125) ELT 836 (Tribunal), has held that inspection charges borne by the buyer with regard to inspection carried out by a third party on account of the buyer, is not includible in the assessable value. * They also rely on the following cases wherein, it has been held that additional/ special tests carried out at the instance of the buyer whose cost was reimbursed, are not includible in the value of goods for payment of central excise duty:- a) Collector of Central Excise, Jaipur Vs. Shree Pipes Ltd.-1998 (103) E.L.T. 94 (Tribunal), b) S & S Power Switchgear Limited Vs. Addl. Collr of C. Ex., Madras- 1998 (99) E.L.T. 507 (Tribunal) c) Commissioner of Central Excise, Belapur Vs. Sulzer Pumps India Ltd.- 2015 (326) E.L.T. 619 (Tri. Mumbai) * Similar issue in their own case has been decided by Commissioner (Appeal), Central Excise & Customs, Meerut-II vide OIA No. GZBEXCUS-000-APP-0351-15-16 dated 09.03.2016. It was held that special test carried out ....
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....ration of India Limited on the appellant bearing reference No.CCCS/162-CC/CD-1182/3/G10/NOA/3946 dated 22.10.2011. Drawing attention of the bench, learned Advocate mentions that at para 3.1 of above PO, amount against type test charges is separately mentioned which is in addition to price of goods at its work's. He also pleads that the entire exercise is revenue neutral as duty paid by them would be eligible as credit to the buyer. He pleads that in the light of various case laws referred to by him, his appeal may be allowed and the demand in the case be set aside. 4. Opposing the prayer, learned AR reiterated the finding of the lower authority justifying demand of differential duty along with interest and penalty. He submits that explanation to Section 4 of the Central Excise Act, 1944 clarifies that the transaction value includes any amount that the buyer pays to the assessee by reason of or in connection with the sale of goods. It is established from the facts of the case that amount representing type test charges have flown from the buyer to the appellant for sale of finished goods. Therefore, such charges are includible in the assessable value of goods and leviable to centr....
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....vities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto. It provides safe, reliable and quality goods; minimising health hazard to consumers; promoting exports and imports substitutes; control over proliferation of varieties etc through standardization, certification and tests. IS 398 (Part II) not only specifies various tests to be conducted on ACSR Conductors but also prescribes samples selection for type tests, methodology for testing, calculations as well as various parameters. 5.2 Type tests for ACSR conductors are done to verify design, material quality and the manufacturing process to examine whether the conductor can safely withstand the extreme mechanical, thermal and electrical stress of long- distance, high-voltage power transmission before it is mass-produced. These tests are to be done once on sample of conductor to be supplied under the contract. These tests are typically mandated by international specifications like IS 398 (Part-II/V), IEC 61089, or ASTM B232 and are to be conducted in accordance with the procedures laid down in IS 398 (Part-V) in certified, accredited laboratories. They are d....