2026-VIL-1663-CESTAT-AHM-CE
  1. Home
  2. 2026-VIL-1663-CESTAT-AHM-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Includibility of type test charges in assessable value of goods -Appellant, engaged in manufacture of ACSR Conductors, collected type test charges from a buyer for testing conducted through a third-party agency at the buyer's instance, without including the same in the assessable value for payment of central excise duty - Demand of differential duty, interest and penalty was confirmed on the ground that such charges were paid by the buyer in connection with the sale of goods and hence includible in the transaction value - Whether type test charges received by the appellant from the buyer are includible in the value of goods for charging central excise duty - HELD - Type tests on ACSR Conductors are prescribed under the applicable Indian Standard to verify design, material quality and manufacturing process, ensuring the conductor can safely withstand mechanical, thermal and electrical stress before mass production, and are mandated by the applicable standards to be conducted in certified, accredited laboratories - Such type tests undertaken as per the mandate of the standard are for ensuring safety in transmission of electricity and are thus mandatory tests, and cannot be considered optional testing - The additional amount received towards type test charges is in relation to the sale of goods, as without the requisite certificate/report the sale would not take place, and hence such amount is received in connection with sale of goods and is includible in the value of goods for payment of central excise duty - The plea of revenue neutrality is a presumption, since leviability of excise duty on excisable goods and availment of Cenvat credit are governed by separate provisions and procedural requirements - The demand of differential duty along with interest is confirmed - Quantum of penalty under Rule 25 of the Central Excise Rules, 2002 - Equal penalty was imposed on the appellant along with confirmation of duty demand for non-inclusion of type test charges in assessable value - Whether the quantum of penalty imposed requires modification, considering that similar show cause notices for the same issue had been issued to the appellant for earlier periods - HELD - Taking a lenient view of the matter, considering that the issue in respect of the appellant is not a new one, the quantum of penalty is reduced - The duty demand along with interest is confirmed, but the penalty amount is reduced, and with this modification, the impugned order is upheld - The appeal is partly allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?