DE NORA INDIA LTD (FORMERLY KNOWN AS TITANOR COMPONENTS LTD.) Vs. COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS

JUDGEMENT

(1.) IN this appeal filed by the assessee, the short question arising for consideration is whether the erection and commissioning charges collected by the assessee from their buyers in respect of the goods (electro chlorinator) supplied to the latter from 1.7.2000 to 31.12.2001 are liable to be included in the assessable value of the goods. According to the appellant, these charges were collected neither by reason of sale, nor in connection with sale of the said goods and hence would not be part of the transaction value as defined under Section 4(3) (d) of the Central Excise Act. In support of this contention, the learned Counsel has relied on the following decisions:

(2.) THE learned SDR, on the other hand, submits that the electro chlorinator, which was cleared by the appellant in CKD/SKD condition, took the form of finished goods only upon installation/erection/commissioning and, therefore, the installation/erection/commissioning charges should also be included in the assessable value of the goods.

(3.) IN the instant case, obviously, the erection/commissioning charges were collected by the appellant independently of the sale of the goods inasmuch as the Revenue has not placed anything on record to show that such charges were collected by reason of, or in connection with, the sale. Therefore, the decision of the lower authorities to include the said charges in the assessable value of the goods cannot be sustained. The impugned order is set aside and this appeal is allowed.