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TMI Blog2018 (4) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... the respondent. Any additional consideration can be included in the assessable value of the goods manufactured and sold - In the present case, the goods in question is transmission line towers, which is manufactured and sold by the respondent. The nuts and bolts etc. are optional item which is sold as a bought out item to the customers, which is nothing but a trading activity. Therefore, the same cannot be considered as extra consideration towards the manufacture of excisable goods produced by the respondent. The value of nuts bolts etc. is not includible in the assessable value of the transmission line towers manufactured by the respondent - appeal dismissed - decided against Revenue. - E/695/09 - A/85766/2018 - Dated:- 21-3-2018 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion line towers, without which transmission line towers cannot be operational and functional. Therefore, even though the bought out nuts and bolts and other accessories supplied directly to the site, its value should be included in the assessable value of the transmission towers as per Section 4(3)(d) of Central Excise Act, 1944 and Rule 6 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, as an additional consideration of sale should be included in the assessable/transaction value for calculation and payment of Central Excise duty. He placed reliance on the following decisions: - (i) Vishwa Industrial Co. P. Ltd. 1999 (107) ELT 774 (Tri- Cal) (ii) Bajaj Auto Ltd. 1989 (44) ELT 63 (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct into immovable property is not part of the excisable goods. Hence, neither dutiable nor its value can be included in the manufacture of transmission towers. In support of his submissions, he placed reliance to the following judgments: - (i) Statfield Systems (coating) Pvt. Ltd. 1996 (87) ELT 50 (Tri) (ii) Radiant Electronics Ltd. 1996 (85) ELT 102 (Tri) (iii) Mihir Engineering (P) Ltd. 1999 (107) ELT 756 (Tri) (iv) BEST Crompton Engineering Ltd. 2002 (147) ELT 344 (Tri-Chennai) 4. We have carefully considered the submissions made by both sides. We find that the appellant is engaged in the manufacture of transmission line towers. The entire activity of the manufacturing is completed without the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44. 52. The issue to be decided is that whether the value of bought out items viz. Nuts, Bolts and Other Tower Parts/accessories directly supplied to buyer's site from open market is to be included in the Assessable value/Transaction value or otherwise. The Respondent has recovered the cost of Nuts, Bolts and Other Tower Parts/accessories from the buyers on separate commercial invoices. As per the appellant they have supplied the towers in CKD condition to the buyers with whom they had written contracts. 53. I find that there is no dispute regarding the fact that the said items are duty paid. The credit of the same has neither been taken by the appellant nor disputed by the Department. In the appeal filed by the Department rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the conveyor system. Some parts of which were manufactured by the manufacturer and some parts and components were purchased from the market. The said decision has been distinguished by the Hon'ble Tribunal in the case of OTIS ELEVATOR CO., (INDIA) LTD. VS. COMMISSIONER OF C.EX. MUYMBAI-V REPORTED AS 2007 (208) ELT-114 (Tri. Mumbai). 55. Coming to the reliance placed on the case of Bajaj Auto Ltd., which can not be applied here as there the issue involved was regarding to the inclusion of the value of the foot rest of the scooter and since the foor rest was an essential part of the scooter, its value was includible. Whereas in the present case nuts bolts and accessories are purely optional items. As for as the decision in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration of this case is not applicable for the fact that the transmission line towers have no functional attributes. Further the said case is pending before the Hon'ble Supreme Court as reported 2007(207)ELT-A 186(SC) 57. Further in the case of Kei ala State Electronics Dev. Corporation Ltd., Vs. Commissioner of C.Ex. Cochin it is held that Bought out items sent to the site where they were assembled alongwith the traffic controllers for manufacture of traffic signal system bought out items become part of the immovable property and not part of the traffic controller - Value not addable to the duty paid goods cleared by the assessee from their factory - Section 4 of Central Excise Act, 1944. The nuts bolts and other accessories i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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