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TMI Blog1999 (5) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... on of equipment (goods), charges towards drawings and specification and installation and Commission charges under Proviso to Section 11 A of Central Excises Salt Act 1944 on the goods supplied to M/s. Suchitra Tubes Ltd. and a penalty of Rs. 1,25,000/- has also imposed. 2. Commissioner has noted that appellant had entered into an agreement with M/s. Suchitra Tubes Ltd. for sale of machinery viz. `machinery and equipment with specific functions. Appellants admitted that the agreements included payment towards goods manufactured and supplied and other payments towards technical know how, assistance charges, charges towards specification of equipment/goods, charges towards drawings, specifications, charges towards installation and commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required to pay the same. He has noted that larger period is invocable in the present case. 3. Shri V.T. Thomas, Dy. General Manager appearing on behalf of the appellants argued both on merits as well as on time bar. The appellants have also filed written submissions. It is pointed out that the agreement between them and M/s. Suchitra Tubes Ltd. was for manufacture of black and white type picture tubes entered on 30-7-1985. The agreement was for supply of special equipment fabricated by them, and that would be to the extent of 302.30 lakhs. The know how charges and technical assistance was Rs. 50 lakhs and Consultation/Execution/Installation/Commissioning charges; was Rs. 50 lakhs. There was also service equipment/test equipment of a valu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Padmini Products v. Collector of Central Excise as reported in 1989 (43) E.L.T. 195 (S.C.) (v) Raj Bahadur Sugar Mills Ltd. v. Union of India as reported in 1996 (88) E.L.T. 24 (S.C.) They stated that demands are barred by time, as there was no allegation of wilful collusion, misstatement, suppression of facts or contravention of any of the provisions of the Act/Rule with an intent to evade duty. 4. They further stated that out of the 3 elements of charges demanded charges pertaining to execution/installation and commissioning charges comes to Rs. 30 lakhs and this is not includible in terms of Supreme Court judgement rendered; in the case of Thermax Ltd. v. C.C.E. as reported in 1998 (99) E.L.T. 481 wherein it has been clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not related to capital equipments supplied, hence there is no justification in adding the value of know how charges with the value of capital equipments supplied, hence they prayed for setting aside the same. Shri V.T. Thomas also submitted that all the details had been given to the department and that dispatch order-cum-invoices on which excise duty was paid clearly indicated the purchase order numbers of the customers and the duplicate excise gate pass alongwith the purchase orders had been submitted to the Range office with RT-12 returns regularly and that all the purchase orders placed by the customers referred to the technical collaboration agreement and that all these purchase orders had been verified by the officers transaction a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f drawing, designing and technical specification of machinery is includible in the assessable value of the machines as without these, the very manufacture itself is not possible. However, in the case of Brarithwaite Company Ltd. v. C.C.E. as reported in 1987 (29) E.L.T. 251, the Tribunal has held that the charges on account of erection, installation and commissioning of electric overhead travelling cranes being charges claimed after removal from factory in nocked down condition by the manufacaturer, at customer s, sites are not includible in the assessable value. As we notice that the charges are in composite nature not bifurcated and as part of it are includible and part of it is not includible, therefore this matter is required to be gone ..... X X X X Extracts X X X X X X X X Extracts X X X X
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