2017 (6) TMI 808

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..... duty on these components bought out and supplied by the appellant. Appeal allowed - decided in favor of appellant.
Ms. Sulekha Beevi C.S. Member (Judicial) And Shri V. Padmanabhan, Member (Technical) Shri R. Parthasarathy, Consultant For the Appellant Shri L. Paneerselvam, AC (AR) For the Respondent ORDER Per Bench The appeal is against OIA No.20/2005 dt. 13.4.2005. The brief facts of the case are that the appellants are engaged in the manufacture of electrical furnace and parts thereof (CSH 8514.00). On scrutiny of their RT-12 returns for the month of January, 1994, the appellants received a purchase order dated 04.03.92 from Machine Tools, Prototype Factory, Ambernath, a factory belonging to the ministry of Defence for supply of .....

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..... t integral part of the continuous gas carbonizing furnace. These items were merely bought out items supplied to the customer at their request. Consequently, the value of these items cannot be subjected to payment of excise duty at the hands of the appellant. Ld. Counsel also relied upon the following case law : (i) Shriram Bearings Ltd. Vs CCE Patna - 1997 (91) ELT 255 (SC) (ii) CCE Trichy Vs Neycer India Ltd. 2015 (320) ELT 28 (SC) (iii CCE Delhi-I Vs K.C. Mittal- 2017 (345) ELT 120 (Tri.-Del.) (iv) CCE Bangalore Vs Southern Batteries Pvt. Ltd. 2016 (344) ELT 939 (Tri.-Bang.) 4. Ld. D.R supports the impugned order. He relied upon section note 4 to Section XVI of Central Excise Act and argued that supplementary items along with the .....

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..... t the aforesaid fittings are not manufactured by the assessee. It is also an admitted position that the assessee supplied the same to those buyers only who asked for that and in such a situation the assessee buys the aforesaid components from the market and supply to the buyers at their option. In these circumstances, the Tribunal has rightly declined to add the value of the aforesaid components which are not the part of flushing cistern manufactured by the assessee. Even otherwise, the amount of tax involved is not much. For these reasons we dismiss this appeal." 7. In view of the aforesaid pronouncement of the Apex Court, we are of the view that the impugned order is not sustainable and hence is set aside and appeal is allowed, wit .....

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