2007 (10) TMI 170 - AT - Central Excise

Allegation is that the purchaser of the paints manufactured by the appellants is incurring a cost of Rs. 2 per litre on account of two of his employees placed in the appellants factory for the purpose of supervision of manufacture of paints - said amount is not collected by the appellants - it is the expense incurred by the purchaser and it is not related to the transaction value and it cannot be added to the assessable value - stay application is allowed granting waiver of pre-deposit

Summary

The Appellate Tribunal CESTAT, Bangalore ordered the appellant to pre-deposit Rs. 7,23,283 as duty confirmed by lower authorities. The allegation was regarding a cost incurred by the purchaser for supervision of paint manufacture, which the appellant did not collect. The Tribunal allowed a waiver of pre-deposit and stayed recovery until the appeal's disposal.