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CUSTOMS, EXCISE AND GOLD (CONTROL) APPELLATE TRIBUNAL, NEW DELHI
U.L. BHAT, K. SANKARARAMAN, JJ.
Trading Engineers (International) (P.) Ltd. -Appellant
Versus
Collector of Central Excise, New Delhi -Respondent
Final Order No. 2141/97-A Appeal No. E/3323/91-A, 2141 of 1997, E/3323 of 1991
Decided On : 16-12-1997
K. Srivastava
Per Justice U.L. Bhat :
Appellant is absent in spite of notice of hearing, but has sent written submissions to assist us in the disposal of the appeal. We have heard Shri K. Srivastava, SDR.
2. Appellant, engaged in the manufacture of generating sets, agreed to supply 40 generating sets of 30 KVA to the Ministry of Defence after manufacturing the sets and mounting the same on trailers supplied free of cost of the Ministry. Appellant who availed benefit of Notification No. 120/75 was paying duty on the invoice price, namely, the price paid by the Ministry. In other words, the cost of trailer supplied free of cost by the Ministry was not shown in the invoice and no duty was paid thereon. In respect of the period 6.4.1977 to 28.2.1980, show cause notice dated 31.12.1980 was issued to the appellant proposing to demand duty on the cost of the trailers. Though the appellant resisted the notice on merits as well as on the ground of limitation, overruling these contentions, the demand was confirmed. The Collector (Appeals) having confirmed this order, the present appeal has been filed.
3. The dispute on merits is covered by the decision of the Supreme Court in the case of Texmaco Ltd., 1995 (77) ELT 501 (SC). In that it was held that no duty was payable on the value of materials and components supplied by customers in cases governed by Notification No. 120/75. Accordingly, we find that the demand was not justified and set aside the impugned order and allow the appeal.
