Central Excise - Dutiability of excisable goods assembled out of duty paid parts / components - Instructions regarding - Central Excise - 199/1602/88-AV (BMB)

Central Excise - Dutiability of excisable goods assembled out of duty paid parts / components - Instructions regarding F. No. 199/1602/88-AV (BMB) Dated 5-7-1989 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Dutiability of excisable goods assembled out of duty paid parts / components - Instructions regarding. It has come to the notice of the Board that certain Collectors still entertain the idea that when certain bought out parts are fitted to finished end product, then the assessable excisable value of such end product should not include the value of bought out parts. "This is an erroneous view". 2. A part of the machine may be "goods" as known in the trade and suffered duty. When assessees, assemble the complete end product by getting other parts bought out from the market/ imported, then a different product emerges and then duty has to be paid on the new product, subject of course to any exemption/abatement prescribed under law. 3. Hon'ble Supreme Court has recently confirmed the above view of the Deptt. / Tribunal in their judgment in the case of M/s. Narine Tulaman Manf. Pvt. Ltd. v. Collector of Central Excise (Civil Appeal Nos. 1335-36 of 1987, decided on 15-9-1988) reported in 1988 (38) E.L.T. 566 (S.C.). A similar view has been taken by Hon'ble Patna High Court in the case of Tata Iron Steel Co. Ltd. v. Union of India 1988 (33) E.L.T. 297 (Patna). 4. Collectors are requested to bring the above judgments to the notice of all officers working under them for strict compliance.