THERMAX LIMITED Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) In this appeal in which four sets of court-fees have been paid, the correctness of the common judgment passed by the Customs, Excise and Gold (Control) Appellate Tribunal (for short, 'the Tribunal') in the three appeals filed by the Revenue and one filed by the present appellants, is questioned.

(2.) The appellants manufacture high pressure Boilers, Process Heat Equipment etc. as per requirements of the customers. The manufacturing process includes pre and post- manufacturing steps. Since Boiler has to be manufactured according to the requirements of the customers, the pre-manufacturing process includes the inspection of site where the Boiler is to be installed and the making of its drawings and designs etc. for which the appellants charge and had all along charged separately from its customers. The post-manufacturing steps include the installation, erection and commissioning of the Boiler at the site for which also the appellants have charged specific amounts from their customers under separate invoices.

(3.) Three separate show cause notices dated December 26, 1983:February 2, 1984 and July 30, 1984 were issued to the appellants in which it was pointed out that during the period from 1-2-1983 to 30-6-1984, the appellants had supplied Boilers but had not included the designing and engineering charges and the erection and commissioning charges in the assessable value even though such charges were recovered by them from their customers on separate invoices. It was indicated in these notices that the designing and engineering, erection and commissioning charges etc. were the charges which constituted the value of the "products" and were, therefore, assessable to excise duty. Consequently, an amount of Rs. 1,14,990.71 was demanded from them.