2014 (3) TMI 375 - AT - Central Excise

Valuation of goods - Whether the installation and Commissioning charges in respect of Packing and Wrapping Machines manufactured by the respondent are required to be added in the assessable value of the same or not - Held that - such charges are recovered separately by the assessee from their buyer and are in no way connected with the value of the goods manufactured by them. The said charges are subsequent to the clearance of the goods and has no nexus with the assessable value of the goods. We are of the view the Commissioner (Appeals) rightly allowed the respondent s appeal and no infirmity can be found therein - Decided against Revenue.

Summary

The appellate tribunal in CESTAT New Delhi ruled that installation and commissioning charges for packing and wrapping machines are not required to be added to the assessable value of the goods. The charges are recovered separately and are not connected to the value of the goods. The Commissioner (Appeals) decision was upheld, rejecting the Revenue's appeal.