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2011 (3) TMI 1207 - AT - Central ExciseApplication for stay - Whether the cost of scrap is to be included in the valuation or not? - Held that - As decided in case of Automotive Stampings and Assemblies Ltd. 2013 (7) TMI 670 - CESTAT MUMBAI following the case of General Engineering Works vs. Commissioner of Central Excise & Customs, Jaipur (2005 (3) TMI 16 - SUPREME COURT OF INDIA) the cost of scrap is includable in the assessable value, if either raw material value is depressed or the conversion charges have been depressed on account of non inclusion of value of scrap in the assessable value - as the appellants have failed to make out a case in their favour they are directed to pre-deposit the entire duty amount within eight weeks - as the impugned order has not discussed the merits of the case the appeal is disposed of by way of remand.
Issues: Valuation of final products - Inclusion of cost of scrap
In this case, the appellants appealed against an order where their appeal was dismissed due to non-compliance with Section 35F of the Central Excise Act, 1944. The main issue was whether the cost of scrap should be included in the valuation of final products cleared by the appellant to their principal manufacturer. The tribunal referred to a similar case and a decision by the apex court, stating that the cost of scrap should be included in the assessable value if it affects the value of raw materials or conversion charges. After reviewing the facts, the tribunal found that the appellants had not made a strong case in their favor. Therefore, the tribunal directed the appellants to pre-deposit the entire duty amount within eight weeks. Additionally, the tribunal noted that the impugned order did not discuss the merits of the case and decided to remand the matter back to the lower appellate authority for a detailed consideration of the issue. The appellants were required to comply with the order and report to the Commissioner (Appeals) by a specified date. The balance amount of interest and penalty would remain stayed during the pendency of the appeal before the Commissioner (Appeals). The appeal was disposed of by way of remand, and the stay application was also disposed of accordingly.
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