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TMI Blog2007 (4) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... em in the manufacture of finished goods viz. Television Sets, sell the same to the assessees on payment of duty with reference to the maximum sale price under Section 4A of the Central Excise Act, 1944. 2. A cost audit was conducted in the assessees factory for the goods manufactured and sold during the period 1st April, 1997 to 31st December, 1997 under the provisions of Section 14A of the Central Excise Act and an Audit Report dated 12th March, 1998 was submitted by the Cost Auditors. The Department was of the view that the assessees were depressing the assessable value of the sub-assembly for the reasons that they were added only 11% towards manufacturing and other expenses and profit element of only 5%, and therefore, the assessees we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing cost of interest, freight from factory to depots and corporate office expenses, and the entire demand raised in the second Show Cause Notice along with levy of interest under Section 11AB and imposition of penalty equal to duty, under the provisions of Section 11AC of the Central Excise Act. The assessees preferred Appeal No. E/3465/04 which was disposed of by way of remand by Tribunal s Order No. A/430/WZB/2005/C-III, dated 17-3-2005, [2005 (192) E.L.T. 239 (T)] in which the Tribunal rejected the contention of the assessees regarding applicability of .Section 4(1)(a) for valuation of PCB sub-assemblies and directed the Commissioner to re-hear the assessees and re-determine the cost as per C.B.E.C Circular, dated 13-2-2003. The Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for fresh decision in accordance with CAS4, in view of the fact that the recent decision of the Apex Court in the case of CCE Pune v. Cadbury India Ltd. - 2006 (200) E.L.T. 353 (S.C.) = 2006-taxindiaonline-88-SC has held that cost such as labour costs, direct expenses, total factory expense, administration expenses, traveling expense, insurance premium, advertising expense and interest are not required to be included in the assessable value of intermediate product captively consumed and the ratio of this decision is applicable on all courts to the facts of the present case wherein the revenue has included such expenses in the value of PCB sub-assemblies which have been found to be captively consumed and their valuation governed by the provi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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