Boc India vs Commissioner Of Central Excise on 8 November, 2004
(x) 2001 (135) E.L.T. 1124 (Rajasthan Electronics Ltd. v. CCE) (DELHI - CEGAT)
Therefore, he submits that the appeal may kindly be allowed with consequential relief to appellants. Mr. Madhiam submits that the distribution facility at purchaser's premises and the commitment by the BOC to maintain reserve capacity on purchaser's premises are required to be carried out prior to the delivery of the goods to the buyer and the above activities are mandatory to provide the said goods to be sold to the respective purchasers. The provision of distribution facility by BOC are an integral part of the sale of the goods by BOC and have nexus with the manufacturer. The distribution facility on purchaser's premises are not going to an expansion of the sale. The sale proceeds complete only after delivery of the goods to purchaser through distribution facility. These facilities are owned by BOC and are required to be carried out on prior to delivery of the goods on sale. Hence the facility charges related to these activities are realised from customers to enrich the value of goods up to point of delivery of the goods. These are collected over and above the sale price and are includible in the assessable value under Section 4 of Central Excise Act, 1944. He also supports the orders passed by the Commissioner of Central Excise, Jamshedpur. Therefore, he submits that the appeal may be rejected.