2007 (11) TMI 157 - AT - Central Excise

Assessee have got drawing and designing for automatic sampler and other machines done by out sourcing the said design work - They have also manufactured and supplied some of the parts and components of the designed structure - held that designing charge does not relate to the excisable goods manufactured and supplied by the appellants but relates to the whole structure of which parts are only made by them, such charges for designing and drawing cannot be included, in the assessable value

Summary

The Appellate Tribunal CESTAT, Kolkata ruled that designing charges not related to excisable goods cannot be included in the assessable value. The decision was based on the case law of Collector of Central Excise, Pune v. Statfield Systems (Coating) Pvt. Ltd. The impugned order was set aside, and the appeal was allowed. The lower appellate authority's order was criticized for not addressing the issue effectively.