C.C.E. Vs. BHASKAR ISPAT PVT. LTD.

JUDGEMENT

(1.) Heard both sides.

(2.) The issue referred to the Larger Bench is whether the chargers for additional testing conducted at the request of customer and the cost of such testing charges being born by the customer, are includible in the assessable value of the goods. The Referring Bench noticed the conflicting view taken by the Tribunal in the case Hindustan Gas and Industries Ltd. Vs. Commissioner of Central Excise and Customs, Baroda, reported in 2001 (133) E.L.T. 481 (Tri. -Mumbai) and in the case of Bhaskar Industrial Development Ltd. Vs. C.C.E., Kolkata -III -Final Order No.A -393 -394/Kol/2003 dated 10.6.2003.

(3.) We have perused the decision of the Tribunal in the case of Hindustan Gas and Industries Ltd. Vs. Commissioner of Central Excise and Customs, Baroda (Supra). In that case the Tribunal had taken into consideration the facts that the inspection charges were not in respect of the optional or secondary testing, hence are includible in the assessable value of the goods. While deciding so, it was also held that it is settled law that charges paid for inspection or testing by third party at the option of the buyer cannot form part of the assessable value. As in the case of Hindustan Gas and Industries Ltd. Vs. Commissioner of Central Excise and Customs, Baroda (Supra) that inspection charges were not for the additional or optional testing, therefore, taking into consideration facts and circumstances of case, it was held that these are includible in the assessable value.