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TMI Blog1994 (5) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise (Appeals) had held that Since the accessories in question were essential part of the boats, their value has to be included for determining the assessable value of the boat . The appellants have, however, contested that the boats at the stage of removal from the place of manufacture - from the boat building yard were cleared/removed without the articles referred to as accessories, and further that these accessories were not supplied alongwith the boats. The exemption was also claimed under Notification No. 102/80-CE, dated 19-6-1980 on the ground that the boats manufactured by them were `ocean going vessels for the purpose of that exemption notification. The order has also been assailed on the ground of limitation. 3. The matter was posted for hearing on 23-3-1994 when Shri Devan Parikh, Advocate appeared for the appellant. The respondents were represented by Shri A.K. Singhal, J.D.R. 4. Shri Devan Parikh, the learned Advocate submitted that the assessee were a non-profit making body. The issue involved in both these appeals related to the inclusion of the value of certain accessories (like wire ropes, fishing gears, monofilament-ropes, wrench, shovels etc.) in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of the accessories in the boats, was not the criteria for assessment. In this connection, the learned JDR relied upon the Bombay High Court s decision in the case of Mahindra and Mahindra Limited v. Union of India, 1984 (18) E.L.T. 262 (Bombay). Reliance was also placed on the Bomaby High Court s decision in the case of Koron Business Systems Limited v. UOI, 1992 (58) E.L.T. 48 (Bom.) = 1992 (43) ECR 291 (Bom.), wherein it has been held that the value of the bought out parts was includible as camera in photocopying machine cannot function without timer and lense. 6. In rejoinder, the learned Advocate stated that the accessories were not fitted into the boats when such boats were cleared from the factory of the appellants. The boats could function without these accessories. They were not part of the boats. In this connection, he relied upon the Bomaby High Court s decision in the case of TI Miller Limited v. Union of India, 1987 (31) E.L.T. 344 (Bom.), and the Tribunal s decision in the case of Webel Telecommunications (I) Limited v. Collector, Central Excise, Calcutta, 1987 (32) E.L.T. 453 (Tri.), Bombay High Court s decision in the case of Koron Business Systems Limited v. Un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. The goods under consideration were classifiable under Item No. 68 of the Tariff. Item No. 68 was a residuary tariff entry and covered the goods which were not elsewhere specified in any of the earlier tariff items. No specific description was provided for any of the goods which came to be classified under Item No. 68. The goods as presented for assessment were subjected to the levy. Among various exemption provided with regard to this levy, an important exemption was with regard to the assessment on the basis of the invoice value under exemption Notification No. 120/75-C.E., dated 30-4-1975. This exemption was provided in exercise of the powers conferred on the Central Government under the then Rule 8 of the Central Excise Rules, 1944 (hereinafter referred to as the `Rules ). The assessee manufactured the bare wooden fishing boats, and cleared them without accessories under invoice value assessment. The accessories were bought out items and were supplied and invoiced separately. In the nature of the excise levy under Item No. 68, the essentiality criteria of any of the accessories does not appear to be relevant while assessing the goods cleared without accessories. Of course, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered all goods not elsewhere specified, and then the items like ropes, wrenches, shovels etc. are general purpose items and no case has been made out that they were specifically designed for use with the goods manufactured by the assessee. Thus, we do not consider that in the circumstances of this case, the various accessories which were not manufactured by the assessee but were bought out items and were not fitted in the goods under consideration but were supplied separately outside the factory premises, were liable to be assessed alongwith the goods under clearrance and further wo do not consider that the value of such items should be added to the value of the goods cleared by the assessee from their factory. 12. The facts in the case of Koron Business Systems Limited v. UOI, 1992 (58) E.L.T. 48 (Bom.) = 1992 (43) ECR 291 Bombay were also different. Therein the petitioners were clearing the camera consisting of bellows and a frame and other attachments of document copier separately, and these attachments and the camera were then assembled into the document copier at the site where the photocopying machine was to be installed. The camera when assembled into the document copi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification No. 104/82-C.E., dated 28-2-1982; however, exemption in favour of ocean going vessels continued under Notification No. 104/82-C.E. Notification No. 104/82-C.E., dated 28-2-1982 was again superseded by Notification No. 234/82-C.E., dated 1-11-1982, but here again exemption to ocean going vessels was provided. 16. It is seen that under Customs Notification No. 211/83-Cus., dated 23-7-1983, exemption was provided from the Customs duty in favour of capital goods, components, raw materials and consumables, when imported into India for repairs of ocean going vessels by a ship repair unit registered with the Director General of Shipping, Govt. of India. For the purpose of that notification the expression `Ocean Going Vessels was explained as to include:- (a) liners; cargo-vessel for various kinds including refrigerator vessels for the transport of meat, fruit etc.; vessels specified for the transport of particular goods (grain, coal, ores, etc.); tankers (petrol, wine, etc.); yachts and other sailing vessels; cable ships; ice-breakers; floating factories of all kinds (for processing whales, preserving fish, etc.); whale catchers; trawlers and other fishing vessels; life b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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