2019 (2) TMI 1664 - AT - Central Excise

Valuation - inclusion of third party inspection charges in assessable value - the third party inspection was requested by the buyer of the goods - HELD THAT - There is lack of documents regarding third party inspection, therefore, these matters also need to be remitted back to the adjudicating authority - appeal allowed by way of remand.

Summary

Issues involved:
Whether third party inspection charges are includible in the assessable value of the excisable final product when requested by the buyer of the goods.

Analysis:

Issue 1: Inclusion of third party inspection charges in assessable value
The Tribunal considered the appeal where the appellant argued for the inclusion of third party inspection charges in the assessable value of the final product. The appellant's counsel referred to a previous order by the Tribunal in a similar case where the matter was remanded for verification of documents related to third party inspection. The counsel requested a similar remand in the present case due to identical issues and facts. The Revenue, represented by the Superintendent, reiterated the findings of the impugned order. The Tribunal noted a lack of documents regarding third party inspection in the present case, leading to the decision to remand the matter back to the adjudicating authority for a fresh order. The impugned order was set aside, and the Tribunal instructed the adjudicating authority to consider the observations from the previous Tribunal order dated 08.06.2016.

This detailed analysis of the judgment highlights the key issue of whether third party inspection charges should be included in the assessable value of the final product. The Tribunal's decision to remand the matter for lack of documentation related to third party inspection emphasizes the importance of proper verification and documentation in such cases. The legal arguments presented by both the appellant's counsel and the Revenue were considered, leading to the decision to set aside the impugned order and remand the case for further review. The reference to a previous Tribunal order with similar circumstances adds context to the decision-making process, showing consistency in the Tribunal's approach to such matters.