CCE Vs. TRANSENERGY LTD.

JUDGEMENT

(1.) THESE appeals by Revenue are directed against Order -in -Appeal No. 13/98 (M -II) dated 13.2.1998 by which the learned Commissioner (Appeals) has held that the value of the bought out items supplied along with manufactured items is not to form part of the value of the CNG conversion kits manufactured by respondent -assessee.

(2.) AGGRIEVED with this order, the revenue has come in appeal on he ground that operation of putting two materials separately has been carried out outside the factory but in the instant case, it is being done within the factory and despatched along with manufactured items. It is, further, submitted that the Commissioner (Appeals) has not discussed whether the said items are essential or not. They have, further, submitted that the Commissioner (Appeals) ought to have taken note of Ministry's letter F.No. 151/1/95 -CX.4 dated 27.6.1996 which stated that the cable joining kits assembled from duty paid components are correctly classifiable under heading 85.47 which itself will be a precedent for the said issue. In view of above submission, the Revenue requests that the Commissioner (Appeals) order may be set aside and the Order -in -Original passed by the Asst. Commissioner be restored.

(3.) HEARD Ld. DR Shri C. Mani who reiterates the department's stand.