9911796707
TMI Blog2003 (1) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... S.M. Tata, SDR, for the Respondent. [Order per : C.N.B. Nair, Member (T)]. Both the appeals are directed against the same order. Therefore, they were taken up together for consideration and are disposed of under this common order. The first appellant, M/s. Nicholas Piramal India Limited is a manufacturer of several varities of medicines. Some of these medicines are manufactured on contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der has held that the contract price cannot be the basis for assessment of the medicines in question inasmuch as it does not include the correct element of profit of the appellant manufacturer, i.e. M/s. Nicholas Piramal India Ltd. The impugned order has accordingly revised the assessable value by making an addition of the overall profit (in % terms) earned by the appellant from its entire operati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... normal price without regard to other items. During the hearing of the case, learned Counsel for the appellants submitted that the valuation ordered under the impugned order is contrary to the Larger Bench decision of this Tribunal in the case of Raymond Industries v. Commr. of Central Excise, Aurangabad - 2001 (129) E.L.T. 327 (T) wherein the Tribunal had specifically held that profit or loss in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a covers all the elements of cost like cost of raw-material, packing material, filter cost, Conversion cost (direct labour, direct and indirect overheads) and margin of profit. No extra consideration has influenced the prices. In such a case, the contracted price merits acceptance as the normal price of the goods. In the valuation of a particular item manufactured by an assessee, the profit or los ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The impugned order has made addition of the overall profit earned by the appellant, as revealed from their balance sheets, to the negotiated sale price of the goods for arriving at the assessable value. This is clearly contrary to the legal provisions contained in Central Excise Act and the decision on the subject. The differential duty demanded and penalties imposed consequent to such an erron ..... X X X X Extracts X X X X X X X X Extracts X X X X
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