1976 (3) TMI 229 - Commissioner - Central Excise

Summary

Issues:
1. Inclusion of grill in the assessable value of evaporative coolers.
2. Classification of grill as an essential part of coolers.
3. Time-bar under rule 10 for demanding duty.

Analysis:
1. The appellant argued that the grill is not essential for evaporative coolers they manufacture, citing IS: 3815 : 1974, which treats grills as accessories. They also relied on a Board Circular stating duty on accessories need not be charged. The appellant sells coolers with or without grills and mentioned that exhaust fan type coolers do not require grills. They contended that the Assistant Collector's order is time-barred under rule 10.

2. The Appellate Collector observed that the grill plays a crucial role in offering air control and directing airflow in blower type coolers. While the ISI standard was referenced, it was noted that excisability is judged case by case. The Collector agreed with the Assistant Collector that the grill is essential for blower type coolers but not for exhaust fan type coolers. Therefore, the value of the grill should be included in the assessable value of blower type coolers.

3. Regarding the time-bar issue, it was found that the appellants declared prices without specifying if they included the grill's value, and these prices were approved by the authorities. The Collector upheld the contention that the demand of duty on the grill's value is time-barred under rule 10 due to oversight by the Central Excise Officers. As a result, demands of duty more than one year old were ordered to be withdrawn.

In conclusion, the Appellate Collector ruled that the grill is integral to blower type coolers and should be included in their assessable value. Additionally, demands of duty beyond one year under rule 10 were deemed time-barred and were withdrawn.