2018 (5) TMI 192 - AT - Central Excise

Valuation - job-work - Revenue is of the view that the job worked goods be assessed to duty under Rule 10A(ii) of Valuation Rules, 2000 - Held that - Clause (iii) of the Rule 10A of Valuation Rules are applicable, as the goods are not cleared/sold from the premises of Job worker but returned to the principal manfacturere - stay application dismissed.

Summary

Issues Involved:
1. Stay application by Revenue seeking stay of the order of Ld. Commissioner (Appeals) regarding assessment of duty on job worked goods under Valuation Rules, 2000.

Analysis:
The Revenue filed an application seeking a stay of the order of the Ld. Commissioner (Appeals) regarding the assessment of duty on job worked goods under Valuation Rules, 2000. The Revenue contended that the job worked goods should be assessed to duty under Rule 10A(ii) of Valuation Rules, 2000, while the respondent argued that it should be assessed under clause (iii) of Rule 10A. The Ld. Commissioner (Appeals) upheld the respondent's contention, citing previous Tribunal judgments and the principles of valuation of job worked goods as laid down by the Supreme Court. The Tribunal found no discrepancy in the Ld. Commissioner (Appeals) order, as it applied the principles of law from previous cases and observed that clause (iii) of Rule 10A was applicable since the goods were not cleared or sold from the job worker's premises but returned to the principal manufacturer. Consequently, the Tribunal dismissed the Revenue's stay application, stating that the appeals would proceed for final hearing on a specified date.

This judgment highlights the importance of applying relevant legal principles and precedents in determining the assessment of duty on job worked goods under Valuation Rules, 2000. It underscores the significance of considering the specific circumstances of each case, such as the movement and clearance of goods, in making such assessments. The decision also emphasizes the need for a thorough analysis of the applicable rules and previous judicial interpretations to arrive at a just and reasoned conclusion in matters of taxation and duty assessment.