K.L. Rekhi, Member (T)

1. This is an appeal filed by the department. The basic point of dispute in this appeal is whether technical service charges recovered by the respondents from their customers, but not disclosed to the department, were includible in the assessable value of computers sold by the respondents, for the charge of Central Excise duty.

2. Relying on paragraph 49 of the Hon'ble Supreme Court's judgment in the case of M/s. Bombay Tyres International Limited -1983 (13) ELT1896 (SC), in which it was held that after-sale-service charges were includible in the assessable value under Section4 of the Central Excises and Salt Act, 1944, the Assistant Collector decided that the technical service charges collected by the respondents were to be included in the assessable value. And since the respondents had disclosed to the department only that part of the contract with their customers which related to the sale of computer hardware, kept back the other part relating to the technical service charges and software etc. supplied by the respondents in connection with the hardware and issued separate bills for the technical service charges and software from their head office, the A