1997 (9) TMI 272

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..... e interest that would accrue in respect of the same. 2. The learned Advocate for the appellants has pleaded that the issue stands covered by the ratio of the decision of the Tribunal in the case of C.C.E., Madras v. M/s. Shardlow India Ltd., reported in 1997 (70) ECR 545. Under similar circumstances, he has pleaded that the Tribunal has directed that the cost of the moulds and dies should be amortised over the life of the moulds and dies used for the production of the goods. He has pleaded that before the learned lower authority they had cited this decision but the learned lower authority had chosen to ignore the ratio of this decision and has adopted a method which is not in accordance with law. He has prayed for following the ratio of t .....

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..... r dies are relatable to the goods which are manufactured by use of the same. The question posed is only as to how duty attributable to the cost of the same has to be collected, i.e. whether the same is to be collected as a one time levy notwithstanding the quantum of production of forgings manufactured by the assessee by use of these or it should be spread over the number of forgings which may be cleared ultimately by use of the master die till it becomes unusable. We observe that it will not be correct in law and also equitable to collect duty in respect of expenses incurred on the master die as one time levy. Development of the die is the first step towards manufacture of the forgings and each die has certain life span and can yield certa .....

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..... to the forgings. The assessee should furnish the necessary data in this regard to the authorities and thereafter the goods should be assessed. With these observations, we dismiss the appeal of the Revenue. 6. In our view the principles as laid down above are required to be followed and the cost of the moulds and dies has to be amortised over the life span of the moulds and dies which can be ascertained by making enquiries with the technical people and applying the best of judgment method in case the customer s order does not give the number of pieces to be manufactured out of these moulds and dies. The loading factor, by using this best of judgment method should be determined. In case the customer s order gives the number of pieces which .....

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