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TMI Blog2024 (10) TMI 884X X X X Extracts X X X X X X X X Extracts X X X X ..... goods leave the factory but, at the same time, it is an optional exercise at the instance of such customer, as lack such facilities at their respective premises. Duty, being leviable on manufacture of goods, arises and upon transformers coming into existence but chargeable only upon clearance. The contention of the lower authorities is that the goods do not come into existence until after the type test is concluded. This premise is clearly unacceptable inasmuch as the clearance to other customers are of transformers on which such tests have not been carried out. Consequently, duty liability devolves upon manufacture of transformers even before type test is carried out. It is clearly evident from rule 5 of Central Excise Valuation (Determina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -III/2014-15 dated 9th June 2015] of Commissioner of Central Excise (Appeals), Mumbai II, in appeals challenging the inclusion, found no reason to interfere with recovery of Rs. 56,73,288/- under section 11A of Central Excise Act, 1944, along with interest thereon, besides imposing penalty of like amount under section 11AC of Central Excise Act, 1944. 3. We have heard Learned Counsel for appellant and Learned Authorised Representative at length. 4. We find the issue pertains to includability of type test charges collected from customers in accordance with specific contracts and which, according to central excise authorities, having been undertaken before removal from the factory constitutes transaction value as set out in section 4 of Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the Tribunal in Ericsson India Pvt Ltd vs. Commissioner of Central Excise, Pondicherry [2007 (212) ELT 198 (Tri-Chennai)], HCL Infosystems Ltd. v. Commissioner of Central Excise, Pondicherry [2009 (245) ELT 712 (Tri-Chennai)], Commissioner of Central Excise v. Stone India Ltd [2007 (212) ELT 209 Tri-Kolkata] and that of Hon'ble High Court of Karnataka in Essar Telecom v. Union of India [2012 (275) ELT 167 (Kar)] have settled the issue of discharge of liability of service tax precluding the incorporation of such assessable value for levy of another duty/tax. 8. In re Ericsson India, it has been held that 9. We have carefully gone through the records and considered the submissions made by both sides. In the instant case, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable comprises MSCs, BSCs and BTSs. No MSC or BSC is situated in the jurisdiction of the adjudicating authority. This claim is not contested by the Department. Hence the adjudicating authority was not competent to decide installation/assembly of several equipments as constituting manufacture when critical components of that system were situated outside his jurisdiction. In the circumstances, we find that the impugned order is devoid of merits. Accordingly we set aside the impugned order and allow the appeals. 9. Learned Authorised Representative has relied upon the decision of Commissioner of Central Excise v. Cera Boards and Doors [2020 (373) ELT 794 (SC)]. The dispute therein was in the context of clearance prior to the revision in s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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