2008 (7) TMI 628 - AT - Central Excise

Summary

Issues involved: Appeal against order of Commissioner (Appeals) regarding inclusion of charges in assessable value.

Summary:
The appeal was made against the order of the Commissioner (Appeals) regarding the inclusion of charges in the assessable value. The appellant, engaged in manufacturing engineering equipment, had collected various charges from customers. The original authority and Commissioner (Appeals) held these charges to be includible in the assessable value, resulting in a demand of Rs. 54,90,641. The appellant argued that charges for supervision, erection, and commissioning were not includible, citing a Supreme Court decision in Thermax Limited v. Collector of Central Excise.

Upon careful consideration, the Tribunal found that the charges were for post-clearance activities based on separate contracts with customers. Referring to the Supreme Court decision, it was concluded that installation and commissioning charges could not be included in the assessable value of goods supplied. Therefore, the charges for supervising such activities were also deemed not includible. Consequently, the orders of the original authority and Commissioner (Appeals) were set aside, and the appeal was allowed with consequential relief.

The Tribunal's decision was pronounced on 11-7-2008.