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TMI Blog2002 (12) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... pany and Rs. 15,000/- on Shri I.S. Banan, Director. 2. Shri B.L. Narsimhan, learned Advocate, submitted that the Appellant-Company manufactures various components of machines as per the orders of their customers; that they had, also in view of the need of the customers, also developed tools/dyes as per drawings provided by the customers; that tools, so developed, are used in the manufacture of components; that after paying the duty on the tools so developed, the tools are retained by them for use in the manufacture of final products; that the Additional Commissioner under the Adjudication Order No. 46/2000, dated 29-9-2000 confirmed the demand of duty and imposed penalty on the ground that the cost of the tools should be amortized to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .L.T. 266 wherein it has been held by the Tribunal that the depreciation method is designed for different purpose and the matter was remanded for amortization in accordance with the life span of the dyes and fixtures in the light of the Tribunal s decision in the case of Flex Industries v. Commissioner of Central Excise - 1997 (91) E.L.T. 120 (Tri.). Regarding duty on components, the learned Advocate submitted that the components were removed under the cover of proper invoice and appropriate duty was paid thereon. We also heard Mrs. Krishna. A. Mishra, learned Senior Departmental Representative. 3.1 It is settled law that the cost of tools and dyes has to be amortized and added in the assessable value of the final products. It has been he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expected number of finished products which can be manufactured by use of the tools. 4. The demand of duty has also been confirmed on account of shortage of components noticed by the Central Excise officers on their visit of the unit of the Appellants factory premises on 9-7-98. The Additional Commissioner has given his finding in this regards as under :- A shortage of 5,600 pcs, 5,000 pcs and 450 pcs pertaining to production slip dated 25-6-98 and 3,200 pcs pertaining to production slip dated 13-6-98 were not found entered in the RG-I register of M/s. SEECPL. In their defence reply dated 22-8-2000 M/s. SEECPL had admitted that due to inadvertence the said components left to be entered in the RG-I register (Para 2 on P-27). They had ..... X X X X Extracts X X X X X X X X Extracts X X X X
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