9911796707
TMI Blog2001 (8) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... eld. In the Order-in-Original the learned Deputy Commissioner had confirmed a demand of Rs. 89,712/- (rupees eighty nine thousand seven hundred twelve only) and had imposed a penalty of Rs. 9,000/- (rupees nine thousand only) and had also ordered payment of interest @ 20%. 2. The facts of the case are that the appellants are manufacturers of certain items. In the present case they designed and manufactured Drop Hammer Structure under contract. A few bought-out items were required to be installed at site for operating the Drop Hammer, these bought-out items were purchased from the open market on payment of duty. The appellants installed Drop Hammer Structure. It was nothing but a structure within which the hammer operated. This hammer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... structure from which it is released to drop by gravity vertically along with rails. It has been stated in the affidavit that the vertical drop hammer structure cannot be dismantled and removed without incurring extensive damage to the bottom portion which is embedded in concrete and will have to be gas cut with some part remaining embedded. The learned Counsel submits that a close reading of such process of manufacture indicated above shows clearly that drop hammer structure is embedded to earth and is not goods, therefore, not excisable. Learned Counsel also brought with him his technical expert who explained the process of setting up the drop hammer structure with the help of photographs. In support of his contention, the learned Counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel cited and relied upon a number of Tribunal s decisions and stated that the value of bought-out items cannot be added. 4. Shri V.K. Chaturvedi, learned SDR submits that Drop Hammer Structure is a distinct commodity and since a distinct commodity, which is distinct in character, name and use, therefore, duty is chargeable. He submits that for arriving at assessable value, the value of the bought-out items is to be added. Reiterating the findings of the Authorities below he submits that new commodity is produced and the value of the bought-out items should be included for the purpose of assessable value of the Drop Hammer Structure. 5. We have heard rival submissions. We have perused the case-law cited by the appellants. On careful c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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