Judgment:
1. These are 11 appeals filed by M/s. Nichrome Metal Works involving common issues and, therefore, they are clubbed together and are being disposed of by this common order.
2. The point to be considered in these cases is whether following charges are deductible in determining the assessable value of the goods manufactured and cleared by the assessee : 3. When the matter was posted for hearing none appeared on behalf of the appellants. However, they have requested to decide the case on merits based on their written submissions. In the written submissions they have submitted that the Assistant Collector has disallowed the following items in the contract price: 4. It was submitted by them that the Collector (Appeals) while upholding the decision of the order passed by the Assistant Collector relied upon the Apex Court decision in the case of Bombay Tyre International to observe that Sl. Nos. (i) to (v) as aforesaid to boost or enrich the marketability of the product, as these are in the nature of after-sale-services and marketing and selling organisation expenses, which cannot be allowed to be deducted.
5. With regard to bought-out items, if these are supplied along with the machines, as its part and parcel; then cost of such bought-out items would also form part of the assessable value of the goods and if it is only a trading activity, it won't.
6. Shri P. Das, ld. SDR, reiterated the findings of the authorities below and justified the orders on the ground that these expenses as such cannot be deducted in determining the assessable value.
7. We have carefully considered the submissions made by both the sides and perused the records.
8. With reference to loading and forwarding charges, it is clear from the record that these charges were incurred within the factory and accordingly, the same is to be included in the assessable value of the products. In support of these Shri Das, ld. SDR, submitted that this issue has already been covered by the ratio of the decision in the case of AIMS Oxygen Pvt. Ltd., Baroda v. Collector of Central Excise, Baroda - 1988 (36) E.L.T. 151 (T). Accordingly, loading charges which are incurred in the factory before the clearance (of the goods are to be included in the assessable value following the ratio of the decision of the Apex Court in the case of Bombay Tyre International reported in 1983 E.L.T. 1886 (SC) and 1987 (27) E.L.T. 553 (SC). However, Apex Court has observed in this case that unloading charges recoverable from customers are not includible in the assessable value as the same was incurred by the assessee outside the factory after the clearance of the goods. So in the circumstances the appellants fail on the first issue and succeed on the second issue. Similarly, installation and commissioning charges cannot be added in determining the assessable value of the product since the Tribunal has been consistently taking the view that installation commissioning charges with reference to the plant and machinery is installed at the fate of the customers cannot be included in the assessable value.
9. As regards warranty charges if the warranty charges is within the part and parcel of the assessable value for a particular period it is required to be added. As regards the cost of bought-out items there is no evidence placed on record to show that it was only of a trading activity as urged by the party. On the other hand, the Collector (Appeals) has observed that these bought-out items are not only the essential parts of the excisable goods but were also supplied along with the excisable goods. This factual position was not rebutted by the appellants either in the Memorandum of Appeals or in the written submissions lyaint stating that it was only a trade activity. It is true that they are not manufacturing these bought-out items but if they were supplied along with the excisable goods the Tribunal has been taking the view that cost of such bought-out items enriches the value of the excisable goods and accordingly, the cost of such bought-out items are to be included in the assessable value. Accordingly, we hold that in the instant case the cost of bought-out items is included in the assessable value.
10. With these observations all these appeals are disposed of in the above terms.