CESTAT Chandigarh Quashes Excise Duty Demand on Bought-Out Items

Oil Lube Systems Vs Commissioner of Central Excise (CESTAT Chandigarh) Introduction: This article covers the recent CESTAT Chandigarh order in the case of Oil Lube Systems Vs. Commissioner of Central Excise. The appeal involves the inclusion of the value of bought-out items in the assessable value of service equipment systems. The CESTAT quashes the excise duty demand due to lack of proof that the bought-out items are essential for the functioning of the supplied goods. Analysis: The appellants, Oil Lube Systems, were alleged to have violated excise duty rules by not including the value of cer...