2015 (2) TMI 1005 - AT - Central Excise

Valuation of goods - Inclusion of transportation charges of the inputs in the assessable value - Held that - cost of the input will not only be the charges on which such goods have been purchased by M/s Indian Security Press but also include the transportation cost upto the job-worker s place. Accordingly we do not find any infirmity in the impugned order. - Decided against assessee.

Summary

Issues:
1. Inclusion of transportation charges in the assessable value for excise duty calculation in job-work basis manufacturing.

Analysis:
The case involved a dispute regarding the inclusion of transportation charges in the assessable value for excise duty calculation in the context of job-work basis manufacturing. The appellants were manufacturing goods on behalf of another entity and were paying duty based on the value of inputs received, adding their job charges to arrive at the assessable value. The Revenue contended that transportation charges of the inputs should also be added to the assessable value. A demand notice was issued, and the appeal against it was rejected by the first appellate authority.

The appellant, through a letter, informed about the demise of their consultant and requested a decision based on the appeal statement. The Revenue argued that the notional value for goods on job-work basis should include the transportation cost up to the job worker's place along with the cost of inputs and job charges. The Tribunal agreed with this argument, stating that the cost of input should encompass not only the purchase cost by the entity but also the transportation cost to the job worker's place. Consequently, the Tribunal found no error in the impugned order and dismissed the appeal.

In conclusion, the Tribunal upheld the inclusion of transportation charges in the assessable value for excise duty calculation in job-work basis manufacturing, emphasizing that the cost of input should cover not only the purchase cost but also transportation costs to the job worker's place. The decision was based on the understanding that the notional value for such goods should consider all relevant costs incurred up to the job worker's location.