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TMI Blog2016 (2) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... o the first appellate authority to reconsider the issue of inclusion of cost of additional testing charges conducted at the request of customer and inclusion of cost of documentation charges. The Tribunal had remanded the matter with a specific direction to consider the judgement of the Tribunal in the case of Bhaskar Ispat Pvt Ltd. 2004 (167) ELT 189. 4. Learned Counsel appearing on behalf of the appellant submits that the first appellate authority has not considered the view of the larger bench in its proper perspective. He would then draw our attention to the said judgement and submit that the issue of inclusion of additional testing charges is settled in favour of the appellant. As regards the inclusion of the cost of documentation cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng a finding that 16 tests are required to be conducted on the transformer in the appellants plant; were essential to market the transformer as per Indian standards 2026 and also on the statement of the technical personnel. We find that the findings recorded by the first appellate authority are incorrect. The statement of Deputy General Manager indicates that the tests which are required to be conducted on the Transformers, the statement also records that the appellant conducts all the tests and which are required for their own quality control tests to market the final products. We do not find anything in the statement which states that the appellant has recovered the cost of this mandated testing from the customers. The appellant has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isputed that the normal testing charges to the satisfaction of ISI which are necessary for making the goods marketable are included in the assessable value. 11. In this case, the duty is chargeable on the price which the manufacturer gets at the time and place of removal of goods. The appellant is not charging anything from the customers towards the additional testing conducted at their instance. The clause of the contract provides that the inspection charges shall be borne by the department but the same shall be paid initially by the contractor and shall be claimed in full in the respective bill for 98% payment through bank. Therefore, the manufacturer is not getting anything extra except the price which he is getting from other wholesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod is in respect of additional copies of drawings of the Transformers given to their customers on specific request of the customer. Learned Counsel categorically states that one set of drawing given along with the transformer to the customer free of cost. In our considered view, cost of additional copies of drawings given to appellants customers on specific request cannot form a part of the assessable value as these cost are post manufacturing and clearance.
10. In view of the foregoing, we find that the impugned order is unsustainable and liable to be set aside and we do so. The impugned order is set aside and appeal is allowed.
( Operative part of the order pronounced in Court on 4.12.2015 ) X X X X Extracts X X X X X X X X Extracts X X X X
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