2016 (4) TMI 889 - SCH - Central Excise

Includability - Whether the value addition made to the Jeep, by way of bullet proofing, has to be added while arriving at transaction value for the purpose of excise duty - Held that - as far as clearance of these Jeeps from the factory of the respondent/assessee is concerned, they were cleared without any bullet proofing. It is only after clearance that the Jeeps were sent to get the processing of bulletproofing carried out by job workers outside the factory premises. The Tribunal has, thus, rightly held that in such circumstances, the cost of bullet proofing could not be added to arrive at the transaction value. The order of the Tribunal does not warrant any interference. - Apex Court dismissed the appeal of revenue

Summary

The Supreme Court dismissed the appeal regarding the addition of value for bulletproofing to the base vehicle for excise duty calculation. The Court upheld the Tribunal's decision that the cost of bulletproofing should not be added to the transaction value as the vehicles were cleared without bulletproofing and processed later outside the factory premises.