2011 (3) TMI 629 - AT - Central Excise

Assessable value of transformer - Installation and commissioning charges - the sale contract under the column price mentioned that extra charges for placement of transformer on the plinth is Rs. 15 000/- (Rupees Fifteen Thousand only) per unit whenever applicable meaning thereby that these charges are not condition precedent to the sale - In some cases after the clearance from the factory on payment of duty at the request of the buyer the Respondents undertaken the installation of the transformer as these charges are optional therefore such charges are not includible in the assessable value of the transformer - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT, Kolkata dismissed the appeal filed by the Revenue against the impugned order setting aside a demand and penalty related to assessable value of transformers. Charges for installation and commissioning collected separately are not part of assessable value as they are optional. Charges for placement on the plinth are not includible in the assessable value. The appeal was dismissed.