2004 (2) TMI 409 - AT - Central Excise

Summary

Issues:
1. Inclusion of the value of pattern in the assessable value of castings.

Analysis:
The primary issue in this case revolves around the inclusion of the value of the pattern in the assessable value of castings. The appellant, in this instance, raised a concern regarding the calculation method employed by the Revenue, specifically whether the pattern's value, calculated at 4% of the total value of the castings, should be considered. It was highlighted that the castings were custom-made for different customers who provided their own patterns on a loan basis. These patterns were deemed non-consumable and capable of repeated use for producing numerous cast articles. The appellant contested the Revenue's calculation method by presenting an alternative calculation of 0.0044% of the value of the steel castings, supported by certificates issued by a Chartered Engineer and a Cost Accountant.

Upon reviewing the certificates submitted by the appellant, the Tribunal noted that the Order-in-Appeal did not accept these certificates without providing a valid reason for the rejection. The Revenue failed to present a clear basis for their calculation of the pattern's value at 4% of the total casting value, both in the show-cause notice and the subsequent order. The Tribunal emphasized that since the appellant's claim was supported by certificates from reputable professionals and there was no contradictory evidence from the Revenue, there was no justification to uphold the impugned order. Consequently, the Tribunal set aside the challenged orders and ruled in favor of the appellant, allowing the appeals to proceed successfully.