2013 (12) TMI 670 - AT - Central Excise

Addition of the value of third party inspection charges in the assessable value Waiver of pre-deposit Held that - Relying upon CCE, Raipur vs. Bhaskar Ispat Pvt. Ltd 2004 (3) TMI 102 - CESTAT, NEW DELHI - the cost of additional testing conducted at customer s request and borne by the customer is not to be included in the asessable value of goods The inspection is optional at the request of the customers and at the cost of the customers and service tax is being paid in respect of inspection charges Thus, the applicants have made out a case for waiver of pre-deposit of dues Pre-deposits waived till the disposal Stay granted.

Summary

The applicant filed for waiver of pre-deposit of duty of Rs.1,43,547/-, interest, and penalty. The demand was confirmed by adding third party inspection charges to the assessable value of goods. The Tribunal found that inspection is optional at the customer's request and cost, and service tax is paid on such charges. Pre-deposit of dues is waived, and recovery is stayed during the appeal. Stay petition is allowed.