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TMI Blog2009 (3) TMI 485X X X X Extracts X X X X X X X X Extracts X X X X ..... including the customs duty, surcharge and Special Additional Duty which was paid by the Debit in their DEPB scrip. A show cause notice issued for short payment of duty. The show cause notice was adjudicated by the Adjudicating Authority and the demand was confirmed, along with interest and also imposed equivalent penalty under Section 11AC of the Central Excise Act, 1944. Commissioner (Appeals) came to the conclusion that the Order-in-Original as passed by the Adjudicating Authority, needs to be set aside and he set aside the. Held that- commissioner rightly followed the CBEC Circular and case law of M/s Essar Steels Ltd. Commissioner of Central Excise, Visakhapatnam, thus there is no wrong in the impugned order which simply follows the la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t revealed that the cost of compound was arrived at by the respondent by not including the customs duty, surcharge and Special Additional Duty which was paid by the Debit in their DEPB scrip. Coming to a conclusion that this is not in accordance with law, the lower authorities issued a show cause notice why the respondent had short paid the duty amounting to Rs.12,49,872 (Rupees Twelve latch forty-nine thousand eight hundred and seventy two only) under various provisions of the Central Excise Act were indicated in the show cause notice. The show cause notice was adjudicated by the Adjudicating Authority and the demand was confirmed, along with interest and also imposed equivalent penalty under Section 11AC of the Central Excise Act, 1944. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of materials consumed should consist of cost of material, duties and taxes, freight inwards, insurance and other expenditure directly attributable to procurement. This is also the general principles of costing. 3.1 It is his submission that the respondent should have arrived at the correct value of the goods cleared by him to job worker under the provisions of Rule 8 of the Central Excise Valuation Rules, 2000 and had not considered the customs duty, other duty elements for the purpose of arriving at the correct value. It is his submission that this is not according to the general principles of costing. 4. Learned Counsel on the other hand would submit that the issue is now settled by the Larger Bench of the Tribunal in the case of Essa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned order is correct and need not be interfere with any law. 5. We have considered the submissions made at length by both sides and perused the records. the issue involved in this case is whether the amount of customs duty, surcharge, Special Additional duty, which has been paid by the respondent through their DEPB scrip, needs to be added in the assessable value of the products cleared by them to their job worker for further processing and sending the said final products to their mother unit or not? 6. It is undisputed in this case that the amount of customs duty, surcharge and SAD was debited in the DEPB book produced by the respondent while importing the goods. We find that the contention of the learned Counsel that Notification No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is being the case, since any purchases made through a credit card results in only a deferment of payment whereas once dEPB credit is utilized for meeting duty liabilities no payment is required to be made at a subsequent date. As regard the second point, Notification No. 34/97-Cus. is a notification is sued under Section 25(1) of the Customs Act, 1962 and is therefore clearly an exemption Notification providing for absolute and effective exemption form duty subject to fulfillment of certain conditions which in the present case have been satisfied by the appellants. This view is also substantiated, as has also been contended by the assessee by the use of the word "exemption" in para 3 of Notification No. 34/97-Cus. This view has also been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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