Customs, Excise and Gold Tribunal - Delhi
Cimmco Birla Ltd. vs Commissioner Of Central Excise on 13 May, 2003
Equivalent citations: 2003(156)ELT1019(TRI-DEL)
ORDER
K.K. Usha, J. (President)
1. When the application for stay came up for hearing, it was agreed by both sides that the appeal itself can be disposed of. We, therefore, dispense with the condition of pre-deposit and proceed to dispose of the appeal.
2. The issue raised in this appeal by the assessee challenging the order passed by the Commissioner (Appeals) dated 9-9-2002 is whether the inclusion of cost of bought out items in the assessable value of goods manufactured and supplied on contract basis for supply of complete Cement Plant Machines is justified. The adjudicating authority has demanded the duty on the ground that the bought out items were essential for completion of Main Cement Plant Equipment. Therefore, according to the adjudicating authority value of such integral parts/components procured from the sub-contractor were to be added in the assessable value of the goods manufactured by the assessee in arriving at the duty liability. The above view was approved by the Commissioner (Appeals). He relied on the decision of the Tribunal in the case of Asha Pavro Electronics Pvt. Ltd. v. CCE, Mumbai, 2002 (143) E.L.T. 543
3. We heard ld. Counsel for the appellant as well as ld. DR, for the Revenue. There is no dispute on the fact that the goods valued at Rs. 2,21,40,412/- were supplied through the sub-contractor of the appellant at the site of the unit. There is no case that the above goods were manufactured by the appellant and cleared from its factory. The decision relied on by the Commissioner (Appeals) has no application in the facts of the present case. In Asha Pavro Electronics Pvt. Ltd. the bought out items formed part of finished goods, therefore, its value had to be added to the finished goods which were cleared from the assessee's unit.
4. We find no merit in the view taken by the authorities below that the value of the bought out items was also to be added for computing the assessable value of the goods manufactured by the assessee. The fact that the bought out goods were required for completing the contract of erecting the unit will not in any way make those goods part of goods manufactured and cleared from the appellant's factory. In view of the above, we set aside the order impugned and allow the appeal.