9911796707
TMI Blog1998 (7) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... e pistons and gudgeon pins by the appellants is to be included in the assessable value of the said piston assembly. 2. Heard learned Consultant Shri Vijayaraghavan for the respondents and learned JDR Smt. Aruna Gupta for the appellants. 3. Briefly, the undisputed facts involved are that the respondents are manufacturers of automotive pistons, gudgeon pins, etc. Their supplies are both to OE manufacturers of automobile engines as well as to wholesale buyers as replacement spares. Supplies to OE buyer is normally under one invoice which covers 3 items viz., pistons, gudgeon pins and circlips, but they are packed separately and not as a kit. For clearance as replacement spares, the respondents give an option to the buyer as to whether he w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons :- (a) Since circlips are not always supplied along with pistons and gudgeon pins, therefore, this clearly demonstrates that it is not an essential item. (b) It is not in dispute that circlips are not manufactured by them but are merely bought out by them and, therefore, with respect to these the respondents only engaged in trading activity. (c) Simply because sometimes they are packed together as a single kit, it does not make circlips as essential components of this sub-assembly. (d) Circlips are general purpose items clearly covered under sub-heading 7318.21 of the Central Excise Tariff Act, 1985 and these bought out items must have been assessed to duty under that classification. Therefore, they cannot be classified as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hey are essential for the operation of manufactured goods provided they are not fitted or attached to the goods before clearance and no process is undertaken on such bought out items. He submitted that in their case no process is undertaken on the bought out circlips and the circlips are not fitted to the piston assembly at the time of its clearance. Therefore, even if it is found that the circlips are essential for the operation of this assembly applying the ratio of the aforesaid position the value thereof is not includible. (h) He also cited the case of CCE v. Friction Materials reported in 1996 (86) E.L.T. 685 (Tribunal) wherein the value of rivets bought out from the market and supplied along with own manufactured clutch facing and b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d supra. The test of packing together as a kit is also discarded in the case of M/s. Surana Telecom Ltd. by the High Court order supra as also in the Final Order No. 1617/97 by this very Tribunal in the case of M/s. Ashok Leyland Ltd. supra. As regards the test of whether circlips are accessories, we find that the very fact that to OE buyers they are not supplied packed together and also in certain sub-assemblies like those for certain two wheelers and four wheelers, they are not supplied along with the piston and the gudgeon pins clearly goes to establish that circlips as bought out items would correctly be regarded as accessories because in these clearances the option is available to the buyer to not to purchase the circlips along with th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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