By TIOL News Service

MUMBAI, FEB 08, 2016: THIS is an appeal against the O-in-A dated 20/04/2005.

The issue involved is regarding the demand of Central Excise Duty confirmed against the appellant for the period 14/08/2002 to 30/06/2003 on the ground that they had under valued the goods cleared by them.

The facts are that the appellant had cleared vacuum impregnation plant, industrial washing machine etc. falling under chapter 84 by discharging CE duty on transaction value. Subsequently, on the request of their customers, the appellant undertook erection and commissioning of the said machines at their customer's premises and charged separately for such work. It is the case of the revenue that the appellant is required to include these charges in the assessable value for discharging Central Excise Duty, while it is the case of the appellant that the expenses on erection and commissioning are post clearance expenses at the behest of the customers, hence not includable in the assessable value.

The Bench observed that the the issue is no more res integra as the Apex Court in the case of Thermax Limited 2002-TIOL-205-SC-CX had settled the law that installation & commissioning charges for installation of Boilers at customers' premises is not includible in assessable value u/s 4 of CEA, 1944.

Taking a view that the revenue authorities had erred in demanding Central Excise Duty on such charges, the order passed by the Commissioner (A) was held to be unsustainable and hence set aside.

The appeal was allowed.

(See 2016-TIOL-352-CESTAT-MUM)