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TMI Blog2002 (3) TMI 314X X X X Extracts X X X X X X X X Extracts X X X X ..... involved in this instant case. He said that value as such cannot be included because it was not fitted to the main item at the time of clearing. In support of his contentions he referred to the decisions of the Tribunal in the case of Collector of Central Excise, Bhubaneswar v. Radiant Electronics Ltd. reported in 1996 (85) E.L.T. 102, wherein it was held that when the bought out items are supplied besides manufactured articles the value of such bought out articles is not includible even if they 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 for such bought out items. He said that in the instant case, the cartridges are not fitted to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate that since the assessees do not assemble or integrate cartridges with the Housings in their premises the value of the cartridges cannot be included in the value of the MFS. I have considered the submissions of the learned Advocate. In answer to question No. 105, Shri Sudhir Kant, Vice President of M/s. MIPL has stated that cartridges are integral parts of the High Purity Water System without which the purification of water cannot be done. The admitted position is that the Housings manufactured by M/s. MIPL are cleared on payment of duty and the cartridges imported which are meant for the housings are cleared without payment of duty. The Honourable Tribunal in the case of Ingersoll Rand (India) Ltd. v. CCE, Bangalore reported in 1997 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e integral parts of the MFS should be taken into consideration for arriving at the assessable value. It has been emphasized in the case of M/s. Gujarat State Fertilizers Co. Ltd. v. Collector of Customs, Bombay reported in 1996 (88) E.L.T. 549 that parts initially used in the assembly or manufacture of machines are treatable as component parts and if extra parts are imported and supplied these are in the category of spares. It is an admitted fact that the entire cartridges imported have not gone into the initial assembly of the Micro Filtration System. Accordingly, the duty liability works out to Rs. 3,04,921/-. Referring the averments in Para 27, she said that the Commissioner has given a clear finding that Since only a given quantity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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