9911796707
TMI Blog2017 (9) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... ble in the assessable value. The service charges collected for servicing a pump cleared to the customer - includibility - Held that: - The purchase order was only for supply of DG sets and not for installation. No material required for erection/installation was cleared from their factory as part of the DG sets. There was separate order for installation and erection. Therefore, the above discussed charges cannot be included in assessable value in terms of definition of transaction value under section 4 of Central Excise Act. In Bharat Bijlee Ltd. vs. Commissioner of Central Excise, Mumbai [2016 (2) TMI 779 - CESTAT MUMBAI], where it was held that testing charges borne by customer is not includable in assessable value. Further, charge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for setting aside the penalty of ₹ 10,000/-. Hence this appeal. 3. On behalf of the appellant, the Managing Director of appellant Company, Sh. K.S. Jain, appeared and argued the matter. He submitted that appellants had filed detailed reply to the show cause notice. The authorities below failed to consider the contentions put forward by appellant. His arguments can be summarized as under: 3.1 That while accounting for freight charges, they had credited freight insurance charges by oversight. The same has been explained in the reply to the show cause notice and also furnished Chartered Accountant's certificate along with the copy of ledger account. 3.2 In respect of inspection charges, it is submitted that they have coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating the same was produced by the appellant. 3.4 With regard to service charges, he stated that though charges were recovered for the services rendered at customers' site it was post-manufacturing activity. One of the pumps cleared by the appellant was defective which was rectified for which the appellant had collected service charges. 3.5 With regard to consultancy charges and other allegations, he submitted that these common expenses were put in the unit account and thereafter at the end of the year, it was transferred to respective units appropriately and to that effect, they enclosed certificate from Chartered Accountant along with letters received from the respective agencies towards their dues. 4. Against this, the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in 2016 (342) ELT A223 (SC). 7. The next allegation concerns the service charges collected for servicing a pump cleared to the customer. The appellant has explained that one of the pumps which was cleared showed defects and was serviced by them and the charges were collected for the same. Such charges for servicing after clearance of the goods and when defect has occurred cannot be included in the assessable value for the purpose of central excise duty. The servicing was done on the requirement of customer. In respect of installation and erection charges, it is submitted that the erection of DG sets at various sites were done by their sub-constructors by fixing to foundation. The purchase order was only for supply of DG sets an ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
