2018 (1) TMI 355 - AT - Central Excise

Valuation - includibility - certain bought out items sent to the site for the purpose of erection and installation - Held that - the issue has been decided in the case of SIRPUR PAPER MILLS LTD. Versus COLLECTOR OF CENTRAL EXCISE, HYDERABAD 1997 (12) TMI 109 - SUPREME COURT OF INDIA , where it was held that the value of bought out items cannot be added to the assessable value of Acetylene generator as such items are supplied at the site where the plant (Acetylene Plant) is erected - appeal allowed.

Summary

Issues:
1. Inclusion of value of bought out items in assessable value of 'Acetylene Gas Generator'.

Analysis:
The case involved a dispute regarding the inclusion of the value of bought out items in the assessable value of the 'Acetylene Gas Generator'. The appellant, engaged in the manufacture of the final product, argued that the issue had already been settled in their favor by the Tribunal in a previous order. The appellant's counsel referenced judgments in support of their position. However, the Commissioner decided against the appellant, citing a Supreme Court judgment. The Revenue supported the findings of the impugned order.

Upon careful consideration, the Tribunal noted that the issue had been previously decided in the appellant's favor in a Tribunal order dated 20.10.2004. The Tribunal's earlier order had considered the same issue and relevant judgments, including those of the Supreme Court. The Tribunal found that the impugned order was contrary to the earlier binding order, which the Commissioner was supposed to follow based on legal principles. The Tribunal, therefore, set aside the impugned order and allowed the appeal, emphasizing the importance of following precedents and binding judgments.

The Tribunal's detailed analysis highlighted the inconsistency in the lower authorities' orders and the importance of adhering to established legal principles and binding decisions. The reference to specific case laws and judgments, including the Supreme Court's rulings, played a crucial role in determining the outcome of the case. The Tribunal's decision underscored the significance of legal precedents and the obligation of authorities to follow established legal principles in similar cases.