2003 (10) TMI 53 - SCH - Central Excise

Valuation (Central Excise) - Enhancement in valuation - Captive consumption - Job work- Tribunal upheld the orders made by the authorities and took the view that PCC poles are marketable and where the work is done by job work there may be some margin of profit in such activity - Held that - Electricity Board itself was carrying on that job and has not assigned the job to any other person who can gain such profit and no business was carried on by the Electricity Board after manufacturing the poles and selling them out or dealing out with any other person. On the other hand the poles were used for drawing electric lines over them for purpose of transmission of electricity - Decided in favour of assessee.

Summary

The Supreme Court of India ruled in favor of the appellant, a manufacturer of PCC Poles used by the Electricity Board. The Department's decision to add 10% profit to the value of the poles was overturned as the Tribunal's order was deemed unsustainable. The appeal was allowed, and each party was directed to bear its own costs. (Case citation: 2003 (10) TMI 53 - SC)