2003 (5) TMI 161 - AT - Central Excise

Summary

Issues involved: Challenge against duty confirmation and penalty imposition based on inclusion of inspection charges in transaction value of goods supplied to Govt. Department.

Duty Confirmation and Penalty Imposition: The Assistant Commissioner confirmed duty and imposed a penalty on the manufacturer for including inspection charges in the transaction value of goods supplied. The Commissioner (Appeals) set aside the Order-in-Original, stating that the inspection charges were borne by the Govt. Department and reimbursed to the manufacturer, thus not to be included in the transaction value. The Revenue appealed this decision, but the Tribunal found no merit in the appeal. It was clarified that the manufacturers did not collect extra amount for inspection charges and the charges were reimbursed by the Govt. Department. As the inspection was carried out at the instance of the buyers and expenses were met by them, the Tribunal confirmed the Order impugned and dismissed the appeal.