Custom, Excise & Service Tax Tribunal
Commissioner Of Central Excise ... vs Southern Batteries (Pvt) Ltd on 13 July, 2015
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL SOUTH ZONAL BENCH BANGALORE Appeal(s) Involved: E/159/2007-DB [Arising out of Order-in-Appeal No.165-2006 dated 27/12/2006 passed by CCE(Appeals-I), Bangalore] For approval and signature: HON'BLE SMT. ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE SHRI ASHOK KUMAR ARYA, TECHNICAL MEMBER 1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2 Whether it should be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? 3 Whether Their Lordships wish to see the fair copy of the Order? Seen 4 Whether Order is to be circulated to the Departmental authorities? Yes Commissioner of Central Excise ,Customs and Service Tax BANGALORE-I NULL POST BOX NO 5400...CR BUILDINGS, BANGALORE, - 560001 Appellant(s) Versus SOUTHERN BATTERIES (PVT) LTD #30, BOMMASANDRA INDUSTRIAL AREA, BANGALORE Respondent(s)
Appearance:
Shri N. Jagdish, Superintendent(AR) For the Appellant Shri M.A. Narayan, Advocate For the Respondent Date of Hearing: 13/07/2015 Date of Decision: 13/07/2015 CORAM:
HON'BLE SMT. ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE SHRI ASHOK KUMAR ARYA, TECHNICAL MEMBER Final Order No. 21553 / 2015 Per : ARCHANA WADHWA Being aggrieved with the order passed by Commissioner(Appeals), Revenue has filed the present appeal.
2. After hearing both the sides, we find that the respondents are engaged in the manufacture of VRLA batteries which are being cleared by them on payment of duty and there is no dispute about the said fact. In some cases, their customers also place orders for creating battery banks at their premises. For the said purpose, they purchase certain additional items from the market, bring the same into their factory and clear the same to the customers premises. At the customers premises such bought out items are used for creating battery banks.
3. Revenue by entertaining a view that the value of the bought out items is required to be included in the value of the batteries cleared by them, initiated proceedings, culminating into an order passed by the adjudicating authority. On appeal against the same, Commissioner(Appeals) set aside the order of the original adjudicating authority and allowed the assessees appeal. Hence the present appeal by the Revenue.
4. For better appreciation of the reasons adopted by the Commissioner(Appeals), we reproduce para 8 of this order:
8. I find that, in the instant case no new product has emerged and the battery bank is akin to another battery with a higher rating. I also find that there is no contention that the Battery Bank Accessories and Wooden Stands are manufactured by the appellant. The item Battery Bank takes shape at the place of the customer, and tailor made to the requirements. I also find that there is nothing mentioned regarding under valuation of the dry uncharged batteries cleared for this purpose, and the efforts of the department are limited to the inclusion of the value involved on the Batter Bank Accessories and Wooden Stand into the assessable value. Also, the activity of Erection, Installation, Commissioning and Maintenance are covered under the Service Tax provisions, and, hence efforts, if any, for realizing taxes on the said value should be done in that direction. In the absence of any manufacturing activity resulting in a new product in their factory premises, the value of the bought out items, even cleared from the factory premises along with batteries cannot be added to the value of dry batteries as held by various CESTATs/Courts in a number of judgments.
5. As observed by him, the said dispute was the subject matter of various decisions which stands reflected in the impugned order of the Commissioner(Appeals). Admittedly, the appellants are clearing batteries on payment of duty and it is only in those cases where their customers also place orders for creation of the battery bank at the customers premises, they procure necessary other accessories from the market and use the same for creation of such battery bank. The value of same non-essential items cannot be added in the value of battery, or the battery banks created at the customers premises cannot also be considered as manufacture so as to attract duty. No infirmity is found in the impugned order of the Commissioner(Appeals). Revenues appeal is accordingly rejected.
(Order pronounced and dictated in open court) ASHOK KUMAR ARYA TECHNICAL MEMBER ARCHANA WADHWA JUDICIAL MEMBER Raja..
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