1986 (6) TMI 163 - AT - Central Excise

Summary

Issues:
Exclusion of specific costs from the value of forklift trucks for Central Excise duty assessment.

Detailed Analysis:

1. Cost Category I - Battery, Charger, Attachments, and Accessories:
The dispute revolved around excluding costs of battery, charger, attachments, and accessories from the value of forklift trucks for Central Excise duty assessment. The appellants relied on previous orders-in-appeal that favored them on this issue. The department attempted to reopen the issue based on a Supreme Court judgment and a High Court remand order. However, the Tribunal found that the department lacked the authority to revisit settled matters without valid reasons. The Tribunal emphasized that the issue in the previous judgments and orders did not pertain to whether these items could be considered parts of forklift trucks. Citing legal precedents, the Tribunal supported the appellants' argument that such items were accessories, not integral components of the forklift trucks.

2. Cost Category II - Packing and Forwarding Charges:
Regarding the inclusion of packing and forwarding charges in the assessable value of forklift trucks, the Tribunal analyzed the nature of these costs. It was observed that forklift trucks were not typically sold in packaged condition, and crating was only done for long-distance deliveries to ensure safe transport. Therefore, the cost of packing was deemed unnecessary for inclusion in the assessable value. Furthermore, the Tribunal referred to a Supreme Court judgment to establish that loading/unloading or forwarding charges up to the factory gate were includible, while post-factory gate charges were considered part of transportation costs and not to be included.

3. Conclusion and Relief:
Based on the findings related to both cost categories, the Tribunal directed the Assistant Collector to re-determine the assessable value of the forklift trucks and provide consequential relief to the appellants. The appeal was disposed of in favor of the appellants, emphasizing the legal principles and precedents that supported the exclusion of specific costs from the assessable value for Central Excise duty assessment.