KELTRON Vs. COMMISSIONER OF CENTRAL EXCISE, COCHIN

JUDGEMENT

(1.) THE above appeals are at the instance of the assessee. Appeal E/73/2002 and E/176/2002 arise out of a common Order -in -Appeal dated 7 -11 -2001 passed by the Commissioner of Central Excise (Appeals), Cochin in Appeal Nos. E/331/98 and 332/98. Appeal Nos. E/618/2002 and E/837/2002 arise out of order passed by the Commissioner of Central Excise (Appeals), Cochin, dated 26 -3 -2002 and 30 -4 -2002 respectively. Since the issues arising for consideration in the above appeals are common we propose to dispose of the appeals under a common order.

(2.) APPELLANTS are manufacturers of various parts and assemblies thereof for the Attendance Data Management Systems (ADAMS). Some of the parts for ADAMS are purchased by the appellant from outside and supplied along with the manufactured parts to the customers. Appellant was not including the value of the bought out items in the assessable value of ADAMS supplied to the customers. Show cause notices were issued to the appellants alleging that bought out items like uncoded cards, cables, junction boxes, etc., form an integral part of ADAM and, therefore, their value has to be taken into consideration for the purpose of payment of duty. Show cause notice also demanded duty on the software provided by the assessee. Duty demand under show cause notices dated 1 -7 -97, 4 -6 -97 and 11 -8 -97 were confirmed in its entirety by the original authority. The Commissioner (Appeals) under his order dated 7 -11 -2001 affirmed the order passed by the original authority except to the extent of duty demand on interest on advance. The above order of the Commissioner (Appeals) is the subject -matter of Appeal E/73/2002 and E/l 76/2002.

(3.) SIMILAR show cause notices were issued to the assessee for the period August, 1997 to May, 1998 and August, 1999 to December, 1999. The original authority took the view that the appellant is liable to pay duty on the value of uncoded cards, cable and junction boxes. The duty demand on software was dropped. Commissioner (Appeals) under two orders dated 26 -3 -2002 and 30 -4 -2002, which are the subject -matter of Appeal E/618/2002 and E/837/2002, affirmed the above finding of the original authority.