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TMI Blog2017 (11) TMI 1166X X X X Extracts X X X X X X X X Extracts X X X X ..... es with bogies mounted brake cylinder. For completion of this work, the appellant were getting this work done from M/s.JVR Enterprises, Chennai to construct the basic structure for fixing the air brake equipment in the coaches with use of steel pipes on bending, welding of pipes with piece after piece, leak testing etc. Revenue felt that it was not simply cutting of pipes or tightening of these pipes with screws or other fasteners but manufacturing activities done on the spot by M/s.JVR, Chennai on party's behalf under Rule 2(f) of Central Excise Rules, 2002. Without the installation of the structure with the pipes and pipe fittings on the Railway Coaches as per the specific drawing and designs provided by the Railway would render the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that the installation, erection and commissioning charges for equipment installed at customer's premises could not be included in the assessable value. In this regard, he relied upon the following judgments: (a) Thermax Limited vs. CCE-1998 (99) ELT 481 (SC) (b) Ultrasea (India) Pvt.Ltd. vs. CCE, Pune-2016 (336) ELT 364 (Tri.Mumbai) 3. Ld.AR for the Revenue reiterated the findings in the order of the Commissioner (Appeals). 4. Heard the parties and perused the records. 5. We find that in this case, the purchase order issued by ICF, Chennai is for the supply and installation of air brake equipment for non-AC coaches with bogie mounted brake cylinder to schedule no.ICF/SK/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and makes the Air brake system functional. 13, Board had the occasion to examine the issue of erection commissioning and installation in the case of various machines and systems and in this regard issued order No. 58/1/2000 CX dt. 15.01.2002 under Section 37B. In the said order it was held that "for manufacture of goods at site to be dutiable they should have a new identity, character and use, distinct from the inputs/components that have gone into its production. Further, such resultant goods should be specified in the CE Tariff as excisable goods besides being marketable i.e. they can be taken to the market and sold (even if they are not actually sold). The goods should not be immovable." (Emphasis supplied). 14. It has also b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ob worker is essentially a post manufacturing activity. Whether the value of these activities should form part of the value of equipment and whether duty should be discharged on the said value was examined by the Hon'ble Supreme Court in the case of Thermax Ltd. Vs. CCE 1998 (99) ELT 481 (SC). In this case it was argued by the Revenue that "since the sale would be complete only on the erection and commissioning of the boiler at the customer site the expenses incurred in erection and commissioning of the boiler at the customer site the expenses incurred in erection and commissioning of the boilers would also be included in the value of the goods, " The Hon'ble Supreme Court following the ratio of its earlier judgment in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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