2000 (11) TMI 411 - AT - Central Excise

Summary

Issues involved: Determination of assessable value of Audio Decks u/s Central Excise Tariff Act, 1985 - Inclusion of value of Speaker in Audio Decks.

In this case, the issue at hand was whether the value of the Speaker should be included in determining the assessable value of Audio Decks. The appellants, engaged in manufacturing Audio Decks and Speakers, argued that both items fell under different Tariff Items. The Revenue contended that the value of the speaker should be added to the Audio Deck as they were cleared together and the speaker enhanced the performance of the Audio Deck. The appellant relied on a Supreme Court case regarding the value of ball bearings to support their argument. The Tribunal had consistently followed the Supreme Court's rulings in similar cases. After careful consideration, it was found that the cost of the speaker, though essential, could not be considered an integral part of the main item based on the Supreme Court's decisions. Therefore, the appeal was allowed.

This judgment highlights the importance of distinguishing between essential components and integral parts when determining the assessable value of goods for excise duty purposes.