9911796707
TMI Blog1998 (7) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... . Flex Graphite Limited with the direction that the cost of dies realised separately by them from their customers should be loaded to the assessable value of printed pouches of Aluminium foil laminates manufactured by them. 2. Arguing the case of the appellant, Shri S. Ganesh, learned Counsel contended that the cost of the dies realised from the customer by the appellant did not constitute the consideration for sale of the assessable goods, namely, printed pouches. It is not additional consideration for such printed pouches to attract Rule 5 of the Central Excise (Valuation) Rules, 1975. That realisation was the cost of the dies and not for the pouches. No case has been made out by the Department that the price of pouches had been depress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the die. Part of the price of pouches is not received in the guise of cylinders. Learned Counsel referred to the decision of Collector of Central Excise v. Shardlow-India Ltd. - 1999 (110) E.L.T. 772 (Tribunal) = 1997(70) ECR 545 and pleaded that the appeal be allowed. 3. Shri M. Ali, learned Departmental Representative stated in reply that part of the manufacturing cost of pouches attributable to the dies has not been included in the price of pouches but received separately as the cost of the dies. This receipt had not been intimated to the Department. He referred to the Tribunal decision in Dugar Electronics v. Collector of Central Excise, Calcutta 1994 (71) E.L.T. 462 and Government of India decision in Revision Application filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) E.L.T. 120 (Tribunal)]. Question on the aspect of accounting or of depreciation of the cost of the dies raised before us do not alter the fact that the dies in question had been developed by the appellant for the manufacture of the printed plastic pouches and the price thereof (dies) recovered from the concerned customers. For machinery and other capital equipment used for the manufacture of the goods sold to customers, appellant has, no doubt, taken into account, their cost, interest charges, depreciation etc. in the pricing of such products and the prices so fixed include proportionate amounts attributable to such factors. Such is not the case with the dies in question. Their value has been separately recovered from the customers and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the quantity of castings that can be manufactured from it would apply to the cost of apportionment of cylinder used in the manufacture of printed pouches. The Bench proceeded to observe as below :- It may be considered that cylinder is used and consumed in the manufacture of printed pouches; but it is not used in the sense in which raw material is used in manufacture of a product, in such case, the conversion or use of raw material is done quickly and it is easy to correlate a definite quantity of raw material and its value with definite quantity of finished product and its value. In the present case, the use of cylinders is in such a manner that it is spread over a considerable period and over a very large quantity or number of fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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