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Showing contexts for: "EMERSON NETWORK" in Emerson Network Power India P. Ltd. vs Commissioner Of Central Excise on 9 March, 2004Matching Fragments
1. 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/purchase orders, the scope of charges for installation and commissioning was separately agreed to between the appellants and the customers. In certain cases, customers also placed orders for other items which are not essential parts of precision air-conditioning machines manufactured by the appellants. These items were purchased from outside and sent directly to the site of the customers. Some of these items are floor grills, piping, cabling, earthing, remote alarms etc. for the period prior to 1.7.2000. Proceeding were initiated by the Central Excise authorities for including installation and commissioning charges in the assessable value of air-conditioning equipment and UPS systems which were dropped by the Commissioner of Central Excise (Appeals) in his order-in-appeal dated 31.1.2001, following the apex court's decision in the case of Thermax Limited vs. CCE 1998 (99) ELT 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, cost of bought-out items, interest on advances, and freight and insurance in the assessable value of he machines. Duty demand by including the above said elements was confirmed by the Assistant Commissioner vide-in-original dated 24.8.2001. In addition, a penalty of Rs. 20 lakhs was also imposed upon the appellants. The Commissioner (Appeals) vide order-in-appeal dated 13.5.2002 upheld inclusion of installation and commissioning charges, cost of bought-out items and freight charges, but set aside inclusion of notional interest on advances. The assessees have filed appeal E/2127/02 against the above inclusions while the Revenue has filed appeal E/3309/02 against the setting aside of the inclusion of notional interest on advances in assessable value.