Full Judgment
2. The respondents manufacture pneumatic control system falling under Chapter sub-heading 8481.80 of Central Excise Tariff Act, 1985. The jurisdictional Asstt. Commissioner initiated proceedings and passed an order on 27-3-1992 holding that the value of pressure gauge fitted in the pneumatic control system has to be included in the assessable value thereof, for the reason that it is fitted with the system for measuring the air pressure and is integral and essential part of control system and permanent connections are invariably provided in the regulator for fitting of pressure gauges. The order of the Asstt. Commissioner was set asided by the Commissioner (Appeals) in the impugned order. The Commissioner (Appeals) found that it may be that Penumatic control system could not be used without pressure gauge, but he found that the question here is whether the pressure gauge is an optional accessory or not to the system. He observed that considering the pattern of sale and relatively few valves sold fitted the pressure gauge and also the catalogue, of product the respondents showed that the pressure gauge as an accessory and optional and also so specified in the classification list, the Commissioner (Appeals) held that in these circumstances as optional accessory the value of the pressure gauge which is a bought out item cannot be included in the assessable value of the pneumatic control system. The present appeal is against this order of the Commissioner (Appeals).
3. Shri S.V. Singh, the ld. DR for the appellant Commissioner relied upon the grounds of appeal and urged that the Commissioner (Appeals) has ignored the fact that the pressure gauge is integral and essential part of the pneumatic control system and as such the value of the same has to be included in the assessable value.
4. Shri Dharuwalla, the ld. Counsel for the respondents submitted that the respondents, whenever they supplied the system fitted with the pressure gauge they have included the value of pressure gauge in the assessable value. The question of including such cost in the bought out item, even when the goods are not cleared from the factory fitted with pressure gauge, the ld. Counsel relied upon the Tribunal decision in the case of Eureka Forbes Limited v. Collector of Central Excise, Meerut -1996 (83) E.L.T. 334 (Tribunal), wherein the Tribunal has held that optional accessories when they are not supplied or fitted with the equipment and cleared from the factory of manufacture, the cost of such optional accessories are not be included in the assessable value. In coming to this decision, the Tribunal followed the earlier decision on the same line in the case of National Radio & Electronics Co. Ltd. v.Collector -1995 (76) E.L.T. 436. hi the present case also, the pressure gauges are optional accessories as found " by the Commissioner (Appeals) in his order and the respondents are paying duty including the cost of the pressure gauge when they cleared it from the factory fitted with such gauges. The ratio of the Tribunal decision applies in the facts of the case. Therefore, we do not find any reason to interfere with the impugned order. The appeal is rejected.