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TMI Blog2011 (12) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. ORDER Heard both sides. The applicants filed this application for waiver of pre-deposit of duty of ₹ 3,66,92,144/-, interest and penalty of the equal amount under Section 11AC of the Central Excise Act, 1944. The applicants are engaged in the manufacture of parts of boilers and the same were cleared on payment of appropriate duty. Proceedings were initiated by issuing show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the factory. Therefore, the value of bought out items cannot be added to the value of the boilers. The applicants relied upon the decision of the Tribunal in the case of T I Ltd. v. C.C.E., Dibrugarh, reported in 2011 (266) E.L.T. 414 (Tri-Kolkata) wherein the Tribunal held that the bought out items which came to the factory and cleared with tea dryers are to be added to the assessable va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, in view of the orders received by the applicants, the value of the parts whether manufactured or procured has to be added to the value of the assessable value of the boiler. Hence the demand is rightly made. 4. We find that the fact that applicants received orders for erection and commissioning of boilers and certain parts are manufactured cleared as parts of the boilers on appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther cleared from the factory including the bought out items, the value has to be added to the assessable value of the boilers. 5. In the present case, we find that the applicants are manufacturing and clearing parts of boiler on payment of duty. Therefore, prima facie, the ratio of the decision is not applicable to the facts of the present case. As the applicant s bought out items are not comi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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