9911796707
TMI Blog1997 (5) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... them being ICM-15M Crawlair Drill . On 30-12-1987, a lorry MCU 5857 was intercepted and was found carrying one Crawlair Drill manufactured by the appellant. Accompanying documents included two invoices, one for crawlair drill and the other for `drifter . Accompanying gate pass showed payment of duty only on the value of drill in which the value of drifter had not been included and no excise duty had been paid on the value of the drifter since appellant had purchased the item from importer. Executives of the company were, in due course, questioned and their statements recorded and further investigation was conducted. It was found that during the period from 11-5-1985 to 29-12-1987 there were seven other instances of clearance of drill (with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to move the same from one place to another as desired and drill is a complete product by itself without drifter and drifter therefore cannot be regarded as an integral or essential part of drill. All buyers of drill do not purchase drifter and therefore drifter can be regarded only as an optional accessory. The mere fact that an optional accessory is fitted to the equipment before clearance will not render its value liable to be included in the assessable value of the drill. These contentions are rebutted on behalf of the Department by Shri K. Srivastava, SDR. 6. In the reply to the show cause notice regarding function of Crawlair Drills it was stated as follows : The Crawlair Drills are used for purpose of drilling in mines as wel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary head of adequate torque and 0-60 rpm rotation speed." Under heading Optionals it is stated - Water Injection System . There is similar specification in the literature of CM-341. The following are described as `Optionals : Water Injection System 2-Rod, 2-7/8" OD Manual rod changer Conversion kit from DHD for Drifter package and vice versa. 8. From the submissions made in reply to the show cause notice and the literature placed before us there can be no doubt that the appellant manufactures Crawlair Drill models LM-100 and CM-341. The specifications contemplate alternatively Drifter Drilling or DHD Drilling (rotary head drilling). The sale pattern of the appellant would show that customers buy drill either with drifter or wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustain the demand confirmed by the Collector. In this view it is unnecessary to refer to the decisions relied on by both sides throwing light on the controversy as to whether value of optional accessory is or is not to be included in the assessable value of the main product. 9. It has been contended on behalf of the appellant that functionally the drill and drifter are separate entities that the purpose of Drill is to drill holes, while the purpose of Drifter is not to drill holes but to enable the drifter to drill holes. What has been indicated by the appellant in this behalf may be broadly correct, but we have indicated our reasons for holding that drifter has to be regarded as an integral part of the drill. There is no indication of op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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