Page 45 - ELT_1st July 2020_Vol 373_Part 1

(1) Valuation (Central Excise) — Value of bought out items
used for erection, installation and commissioning of
Sugar Plant, whether includible in assessable value
of manufactured goods?

(2) Demand on bought out goods whether sustainable?
The Supreme Court Bench comprising Hon’ble Mr. Chief Justice Ranjan
Gogoi and Hon’ble Mr. Justice Deepak Gupta on 15-7-2019 after condoning the
delay issued notice the Civil Appeal Diary No. 1497 of 2019 with Diary No.
16352 of 2019 filed by Commissioner of Central Excise, Pune-II against the
CESTAT Final Order No. A/86040/2018, dated 17-4-2018 (S.S. Engineer v. Com-
missioner). While issuing the notice, the Supreme Court passed the following or-
der :
“Delay condoned.
Issue notice.
Tag with Civil Appeal No. 11226/2017.”
The Appellate Tribunal in its impugned order had held that the bought
out items used for erection, installation and commissioning of Sugar Plant are
not included in the assessable value of manufactured goods as the bought out
items were not brought to their factory but were directly cleared at site of the
customer without availing credit and was used in erection of immovable proper-
ty. It itself was not clear as to what were the bought out items.
It was further held that the demand made under the guise of bought out
goods is not sustainable as the bought out goods was not part of any excisable
goods at the time of their clearances and appellant being supplier of goods did
not carry out erection or commissioning of the said Boiler but after supply of
goods only supervised the erection. Even if duty is demandable, it would not be
liable to be paid as the alleged activity of installation of goods took place at the
factory of customer and hence they are eligible for exemption in terms of Notifi-
cation No. 67/95-C.E.

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EXCISE LAW TIMES  1st July 2020  45