JUDGMENT

S.H. KAPADIA, J.- THIS CIVIL APPEAL UNDER SECTION 35-L(B) OF THE CENTRAL EXCISE ACT, 1944 (HEREINAFTER REFERRED TO AS "THE ACT") IS A SEQUEL TO CIVIL APPEALS NOS. 4247-48 OF 2000, HENCE, IT IS NOT REQUIRED TO RESTATE THE FACTS OF THE CASE.

2. IN THIS CIVIL APPEAL, A SHORT QUESTION WHICH ARISES FOR DETERMINATION IS WHETHER THE DEPARTMENT WAS RIGHT IN INCLUDING THE COST OF SOCKETS AND THE VALUE OF SERVICE CHARGES IN THE ASSESSABLE VALUE OF MS/GI PIPES.

3. THE APPELLANT HEREIN HAD FILED ITS PRICE LISTS UNDER RULE 173-C IN THE FORM OF PART II IN RESPECT OF MS/GI PIPES FOR APPROVAL WITH THE DEPARTMENT, IN WHICH IT CLAIMED DEDUCTION TOWARDS SERVICE CHARGES AND COST OF SOCKETS FROM THE ASSESSABLE VALUE OF MS/GI PIPES. ACCORDING TO THE DEPARTMENT, THE SOCKETS FITTED TO THE PIPES WERE THE ESSENTIAL PARTS OF THE PIPES; THEY ENABLED THE FUNCTIONING OF PIPES AND IN THE ABSENCE OF THE SOCKETS, THE SAID MS/GI PIPES COULD NOT BE SAID TO HAVE BEEN COMPLETED AS THE SOCKETS WERE THE ESSENTIAL PARTS FOR JOINING THE PIPES TO EACH OTHER. ACCORDING TO THE DEPARTMENT, SERVICE CHARGES WERE NOT DEDUCTIBLE FROM THE ASSESSABLE VALUE OF THE PIPES, AS THE SAID CHARGES WERE PAID BY THE ASSESSEE TO MADHYA