If a Machine has been manufactored at factory and for transport convenience it has been brough in parts at site and then all the part assembled together for installation purpose. Since no new product emerges with new identity at site, there is not manufactore at site. But whether installation, erection charges will be included in transaction value as per CBEC circular 643/34/2002-CX dated 1-7-2002?
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Transaction value in case of assembling
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You have manufactured the goods at factory premises and sale it. At the time of transportation, you have packed the goods in CKD form and installed it at the buyer premises. If transportation and installation charges is includes in the assessable value and pay the excise duty on transaction value then no issue will arise.
If the expenditure on erection, installation and commissioning has been incured to bring into existence any excisable goods, these charges would be included. If these cost are incurred to bring into existance some immovable property, they will not be included in the assassable value of such resultant property
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