1999 (5) TMI 290 - AT - Central Excise

Summary

Issues involved: Whether cost of bought out item is to be included in the assessable value and whether installation charges are to be included.

Issue 1 - Cost of bought out item inclusion: The Revenue contended that items supplied with the video projector are essential for better performance, relying on precedents such as M/s. Bajaj Auto Ltd. v. C.C.E. and M/s. Auto Control Pvt. Ltd. v. C.C.E. The Assistant Collector supported this view. However, the Respondent cited the case of M/s. Shriram Bearings Ltd. v. Collector of Central Excise, Pune and M/s. PSI Data System Ltd. v. Supreme Court, arguing that accessories need not be included in the main article's value if no separate price is quoted. The Tribunal noted that the items in question were not integral parts of the main item, following Supreme Court precedents, and upheld the Commissioner (Appeals) decision to dismiss the appeal.

Issue 2 - Installation charges inclusion: The judgment did not explicitly address the issue of whether installation charges should be included in the assessable value. The focus was primarily on the cost of bought out items and their essential nature for effective use, as per the arguments presented by both sides and the decision based on Supreme Court precedents.