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TMI Blog2023 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... gons. The Weigh Bridge System supplied by the Appellant can run smoothly without these items, as controller DISOMAT-C is sufficient for taking weighment of the system. Transaction value as defined under Section 4(3) (d) of the Central Excise Act, 1944, means that the price actually paid or payable for the goods when sold and includes in addition to the amount charged as price any amount that the buyer is liable to pay, to or on behalf of, the assessee, by reason of, or in connection with the sale, whether payable at the time of the sale or any time thereafter - the value of the bought out items are not payable or paid to the manufacturers of the weigh bridge. The prices of these goods have been paid to the dealers of those goods who s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R. K. ANPAZHAKAN MEMBER (TECHNICAL) Shri Indranil Banerjee, Advocate for the Appellant Shri J. Chattopadhyay, Authorized Representative for the Respondent ORDER M/s Schenck Process India Ltd., (The Appellant) are manufacturers of finished products namely Pitless Electronics In- Motion weigh Bridge (hereinafter referred to as the said finished products ). In the manufacture of the said finished products , they procure the personal Computer, Printer, UPS, Stabilizer and Air-Conditioner from market but they were not including the value of these bought out items for the purpose of payment of Central Excise duty. Accordingly, Central Excise duty amounting to Rs.2,07,264/-, including Education Cess was demanded from the App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated the findings in the impugned order. 5. Heard both sides and perused the appeal records. 6. We observe that the Appellant purchased items such as personal Computer, Printer, UPS, Stabilizer and Air-Conditioner' and supplied along with their finished goods namely ' Pitless Electronics In- Motion weigh Bridge'. A perusal of the functions performed by these goods, which were supplied along with the said finished products, reveal that they were not essential parts, as they were not required for performance of the main function ie, weighment of goods/railway wagons. The Weigh Bridge System supplied by the Appellant can run smoothly without these items, as controller DISOMAT-C is sufficient for taking weighment of the syst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re accessories or parts of the cistern. In our view, relying on the decision of the Bombay High Court in the case of Koron Business Systems Ltd., the boughtout items required to make the cistern functional should be considered as accessories only. These accessories are of different types and made of different materials. At the buyers option, these are supplied by the parts should be included in the assessable value of the cistern. The appellants relied on the decision of the Hon ble Supreme Court in its judgment in the case of Union of India v. Koron Business Systems Ltd. - 1997 (93) E.L.T. 663 which upheld the judgment of the Bombay High Court. In that case the Bombay High Court held that plates and black shields are required for working o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 In the case of Sur Iron Steel Co.(P) Ltd Vs Commissioner of Central Excise, Kolkata-IV, reported in 2018(363)ELT 373(T), it has been held as under: 10 . In the instant case, these items, which were bought out, are totally independent and optional. These are not even the accessories as stated by the Ld. Counsel for the appellant during the course of argument. In this regard, the Hon ble Supreme Court in the case of Commr. of Central Excise, Trichy v. Neycer India Ltd. : 2015 (320) E.L.T. 28 (S.C.), observed that the value of the bought out items cannot be included in the assessable value of own manufactured goods under Section 4 of the Central Excise Act, 1944. In the instant case, it is admitted position that the assessee supplied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght out items. It is very clear that the bought out items such as cable, cards, etc., are used for installation of the system manufactured by the appellants. They may be necessary for function of the system. However the fact remains that they are all bought out items on which excise duty has already been paid. Therefore, there is no reason to add the value of these bought out items to the value of the goods supplied by the appellants. There is also no justification for imposing any penalty on the appellant in both the cases and for invocation of the longer period. Therefore, the appeal is allowed with consequential relief if any. 10. Following the decisions cited above, we hold that the demands made in the impugned order are not sust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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