9911796707
TMI Blog1989 (9) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... iefcases etc. in their factories at Bombay, Satara, Paithan Waluj, all situated in the State of Maharashtra. The appellants-assessee manufacture Travel Bags of various sizes falling under erstwhile Tariff Item 48A of the Central Excises and Salt Act, 1944. Among them, certain bags which were 26" in size were provided with a special type of bracket at the bottom. These brackets are fitted to these bags at the assessee s factory. These brackets are provided for fixing of wheels to the suit cases to enable them to be carried easily from place to place. These wheel kits are not manufactured by them but are purchased after due payment of duty. These Wheel Kits are accounted separately and supplied to the Dealers and ultimately to the consumers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality for want of jurisdiction due to the fact that the same issue was already adjudicated by the Assistant Collector who had the jurisdiction in respect of Satara Unit holding that the value of the Wheel Kits is not to be included in the assessable value of the suitcase and this order was challenged by the Department before the Collector (Appeals) who upheld the decision of the Assistant Collector holding that value of the Kits cannot be included and hence in view of this fact that Executive Collector, Pune is not competent to pass order in respect of the same matter which had been disposed of by the Collector (Appeals) and if he considered that the order of the Collector (Appeals) for any reason, is not legal or proper, the proper course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all the sales were not with Kitwheels and hence the Kit Wheels are neither essential nor integral part of the suitcase but it is only an optional accessory. Strong reliance was placed by the Counsel producing a copy of the Order No. V(48)15-36/Adj./87, dated October, 1987 passed by the other Executive Collector of Central Excise and Customs, Aurangabad in the very appellants case in respect of the other Unit/Factory at Paithen District within territorial jurisdiction of Collector of Central Excise and Customs, Aurangabad wherein he has passed a considered order after making detailed enquiries holding that Wheel Kit is only optional depending upon the customer s choice and hence the value of this cannot be added on the similar facts and ci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if this trend is allowed then there will be a series of cases for claiming refund and deduction when the price of the cleared goods comes down. Hence neither it is the intention nor the scope of the Legislature as specified under Section 4 of the Act. 6. Shri V.K. Sharma, learned S.D.R. appearing for the Department, reiterated the points which the Adjudicating Authority has adjudicated and submitted that the order is justified as Wheel Kit is a part of the suit case and its value is to be added, and also justified levy of differential duty which has taken place due to variation in prices. 7. We have anxiously considered the arguments advanced by both sides. Although the learned Counsel for the appellants pointed out the issue of jurisdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osition and accordingly, Wheel Kit is only an accessory and cannot be treated as a part of the product for the purpose of assessable value. Appellant s counsel cited series of decisions regarding exclusion of the value of the accessories and with utmost respect to all decisions, we would like to consider only few for the sake of convenience and brevity. In the case of State of Mysore v. M/s. Kores (India) Ltd. (26 S.T.C. 87) the then High Court of Mysore has taken a view that typewriter ribbon is not an essential part of a typewriter but it is an accessory and not a part of the typewriter (unlike spool) though it may not be possible to type out any matter without it. While considering for the purpose of aggregation of turnover under Sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levy duty on assessable value at the subsequent stage irrespective of variation in prices. Section 4(3)(b) of the Central Excises and Salt Act, defines the place of removal which includes a factory or any other place or premises of production or manufacture of the excisable goods and accordingly, the goods cleared from factory on payment of duty could not be subject to tax for difference when it was sold subsequently at Depot. We fully concur with the arguments advanced by the appellants counsel on this point. Hence, the appellants succeed on the second point also. 11. In the result, we set aside the impugned order by answering the above two issues in favour of the appellants and accordingly, the appeal is allowed - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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