M/S THERMAX LTD. versus COLLECTOR OF CENTRAL EXCISE

M/S THERMAX LTD. versus COLLECTOR OF CENTRAL EXCISE

Installation and commissioning charges cannot be included in the assessable value of manufactured goods for the purpose of excise duty under Section 4 of the Central Excises and Salt Act, 1944.

Parties
Appellant: MIS Thermax Ltd.; Respondent: Collector of Central Excise
Jurisdiction
India
Judgment Date
15 April 1998
Procedural Posture
Civil Appeal / Appeal From Customs, Excise and Gold (control) Appellate Tribunal
Outcome
Appeal partly allowed
Legal Topics
Excise Duty, Assessable Value, Installation and Commissioning Charges
Taxation Excise Law Excise Duty Assessable Value Installation and Commissioning Charges

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Parties

MIS Thermax Ltd.

Appellant

Collector of Central Excise

Respondent

Procedural Posture

Civil Appeal / Appeal From Customs, Excise and Gold (control) Appellate Tribunal

Legal Issues

  1. 1 Whether installation and commissioning charges are includible in the assessable value of goods for excise duty purposes

Ratio Decidendi

Installation and commissioning charges cannot be included in the assessable value of manufactured goods for the purpose of excise duty under Section 4 of the Central Excises and Salt Act, 1944.

Court Disposition

Appeal partly allowed

Orders

  • Judgment and orders dated May 3, 1985; May 17, 1985; and June 1, 1985 as also the show cause notice dated August 4, 1987 issued by the Collector of Central Excise and his order passed thereon together with the judgment passed by the Tribunal in regard to the inclusion of installation and commissioning charges are...