9911796707
TMI Blog1998 (5) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... spondents. [Order per : K.S. Venkataramani, Vice President]. The appellants manufacture I.C. engines and components thereof falling under Chapter 84 of Central Excise Tariff Act. They are availing Modvat credit of duty on the inputs used in the manufacture of the final products. M/s. Poona Shrims, an SSI unit, supplied them components of I.C. engines valued at Rs. 9310. In the relevant g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y his order dated 3-8-1988 disallowing the credit of Rs. 1,20,000/- and also imposing penalty of Rs. 5,000/- on the appellants. Commissioner of Central Excise (Appeals) in the impugned order has upheld the Asstt. Commissioner s order. It has been observed by that authority that the outlay on design and development charges is unbelievably disproportionate to both the resources at the command of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods supplied, and the charges are not relatable to the items covered by the gate pass only. 4. On considering the rival submissions, it is seen that it is now the settled position in law that design and development charges are to be included in the assessable value of excisable goods under Section 4 of Central Excise Act. The appellants have also explained in the grounds of appeal that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of duty payment in the gate pass in question. The circumstances of collection of duty on design and development charges by the Asstt. Commissioner at the suppliers end is a necessary data in the circumstances of this case in view of the appellants explanation referred to above, without which the denial of Modvat will not be justified. In this view of the matter, we set aside the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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