2004 (4) TMI 354 - AT - Central Excise

Summary

Issues: The judgment involves the classification of bought out piston rings and circlips as parts of piston assembly for the purpose of assessable value and duty imposition.

Details:
1. The appellants, manufacturers of I.C. Engine parts, contested the inclusion of bought out piston rings and circlips in the assessable value of piston assemblies cleared by them, leading to a duty demand and penalty.

2. The appellant argued that while piston rings and circlips are essential parts of an I.C. engine, they should not be considered parts of pistons for duty valuation. They highlighted separate billing and sales of these items, indicating they are distinct components. Reference was made to a previous Tribunal ruling supporting this stance.

3. The Revenue contended, based on expert opinion, that rings and circlips are integral to the piston assembly, supporting their inclusion in the assessable value.

4. The Tribunal rejected the Revenue's argument, emphasizing that each part of a piston assembly is a separate component under the Central Excise Tariff. The expert opinion cited did not alter this classification, as items are traded individually and not as a singular assembly. Manufacturers are liable for duty only on goods they produce, not on all supplied items.

5. Consequently, the impugned order was set aside, and the appeal was allowed.