Central Excise - Assessable value - Determination of - When additional consideration is received by the manufacturer - CEGAT decision no. 440/87-B.1 - Regarding - Central Excise - 9/88-CX.1

Central Excise - Assessable value - Determination of - When additional consideration is received by the manufacturer - CEGAT decision no. 440/87-B.1 - Regarding Circular No. 9/88-CX.1 Dated 8-3-1988 [From F.No. 15C/33/86-CX.1 (Pt.)] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject: Central Excise - Assessable value - Determination of - When additional consideration is received by the manufacturer - CEGAT decision no. 440/87-B.1 - Regarding. I am directed to enclose for your information a copy of Order No. 440/87-B. 1, dated 25-6-1987 passed by the Customs Excise and Gold (Control) Appellate Tribunal, New Delhi in the case of M/s. Gujarat Aluminium Extrusions Pvt. Ltd., Baroda v. Collector of Central Excise, Baroda.(Not Printed). In this case the CEGAT has held that the additional money received by the assessee (and which was not included in the assessable value) was a clear addition to their value and therefore the assessee must pay duty on the declared assessable value plus the additional money (which was not included in the assessable value) received by them. This new value which includes the additional money received by the assessee, is the correct assessable value. 2. The CEGAT's decision referred above is an important one in favour of the revenue, and the Board has accepted the same. The ratio laid down in the said CEGAT's decision may be followed and field formations should go ahead and issue show cause notices wherever necessary, even though a similar matter has been referred separately by the Law Ministry to the Attorney General. 3. This disposes of Collector of Central Excise Meerut's D.O.C. No. V(4-11) (15) Off/Adj/109/79/Pt., dated 24-9-1987 4. Please acknowledge receipt of this circular.