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TMI Blog1990 (11) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... has appeared on behalf of the applicant and pleaded that the doubt to be decided in the appeal is whether the charges in respect of designing and fabrication drawing raised by separate bills are to be included in the assessable value. Shri Arora, ld.Advocate argued that this cannot form part of the product, and as such, it cannot be included in the assessable value. Shri Arora argued on the limitation point that the demand is hit by limitation. He pleaded for the acceptance of the appeal. 2. Shri M. S. Arora, learned JDR, who has appeared on behalf of the respondent, has stated that design and fabrication charges are includible in the assessable value as these are for the fabrication of the goods manufactured by the appellants. In support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as clearly pleaded for the allowing of the appeal. 4. We have heard both the sides and have gone through the facts and circumstances of the case. It is not disputed that the appellants are also doing drawing, designing and technical specification work for the manufacture of the goods. The matter is fully covered by the judgment of the Tribunal in the case of Collector of Central Excise, Bangalore v. Intercon Engineers (P) Ltd. Bangalore, reported in 1987 (28) E.L.T. 458 (Tribunal). Para No. 3 from the said judgment is reproduced below: Para No. 3: We have carefully considered the matter. The Central Excise duty is a tax on goods and not on services. However, we find that the consultancy contracts entered into by the respondents were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to drawing, designing and technical specification costs. Since the break-up of these costs is not available to us, the Assistant Collector shall quantify the amount of the demand in so far as it relates to drawing, designing and technical specification costs recovered by the respondents. It would be open to him to call upon the respondents to disclose the drawing, designing and technical specification costs actually recovered on an affidavit, supported by a certificate from a Chartered Accountant. Where, however, no duty was recovered for the machines because of such machines having been exported out of India, the demand on account of drawing, designing and technical specification would also not be payable." The Tribunal has occasion to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mum benefit out of it and it had no connection with the designing of the equipment supplied, the service or the advice as such would not be taxable nor its value includible in the value of the computer. But any goods supplied as a part of the consultancy service would be taxable on their own merits." 5. We have also gone through the show cause notice. There was mention of nondisclosure of charging designing and consultancy charges in the show cause notice, and we are of the view that there was suppression of facts on the part of the appellants. And, as such, extended period of limitation in terms of proviso to Section 11A was rightly invoked. In view of the above discussion, the appellant fails on merits as well as on limitation. We uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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