C.Ex. - Valuation - Computation of assessable value of drilling rigs - Central Excise - 16/87-CX.1

C.Ex. - Valuation - Computation of assessable value of drilling rigs Circular No. 16/87-CX.1 Dated. 16-11-1987 [From F. No. 6/45/87-CX.1] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : C.Ex. - Valuation - Computation of assessable value of drilling rigs. Doubts have been expressed as to whether in the assessable value of the truck chassis mounted-drilling-rigs, cost of truck chassis is to be included or not. It has come to the notice that divergent practices are being followed in different Collectorates. 2. The matter has been examined by the Board. It was noted that truck chassis mounted-driling-rig is a single entity in which truck chassis and other components are integral and indivisible parts of the drilling rig. Besides this it was also noticed that these parts are already attached to drilling rigs at the time of their removal from the factory. 3. In view of the above, the Board is of the view that the cost of all components including the chassis and other attachments to the drilling rigs will necessarily have to be included in the assessable value irrespective of the fact whether they belong to the customer or the manufacturer. However, the manufacturer may avail of the credit of duty already paid on them under Modvat scheme, if admissible. 4. The aforesaid instructions may please be brought to the notice of the field formations for their guidance. 5. The receipt of this circular may please be acknowledged.