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TMI Blog2007 (8) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... yment of duty from his factory premises. It is the contention of the Revenue that the deemed credit availed by the Respondent is in excess on the ground that the activities of inspection, special export packing grades, manufacturing profit of the exporter are not inclusible in the assessable value for the reason that these are on post-manufacturing activities. It is their submission that by adding these values, the respondent had in fact inflated the value of their goods in order to avail ineligible deemed Cenvat credit. 3. The ld. Commissioner (Appeals) while allowing the appeal of the respondents had come to the following findings :- The appellants have now relied upon the Tribunal s latest decision in the case of Steel Authority of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... twithstanding the fact that some of the processes were done by the buyer at his own expense. In such a situation, the assessable value of the goods while leaving the factory gate will naturally include the cost of all the processes undertaken for making the goods marketable, even if some cost has been incurred by the buyer. The appellants have also referred to CBEC s Circular 139/8/2000-CX.4 dated 3-1-2001, wherein the Board has clarified that cost on account of process not amounting to manufacture, if undertaken inside the same factory premises are to form part of the cost of the final product. The said Circular is also relevant to this case. In view of the above, the cost incurred on all processes that are carried out in the factory of pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availed the deemed credit facility. In view of the above, the demand, interest and penalty do not survive and accordingly are set aside. It can be seen from the above reproduced findings, the ld. Commissioner (Appeals) has correctly come to the conclusion that the Revenue has accepted the amount of the duty, on the value of the goods, which included the value of all the activities which were done by an exporter in the factory premises of the respondent. If that be so, than the value on which the excise duty paid is to be taken into consideration for arriving at the amount of the deemed credit which is eligible to the respondent. If the Revenue is accepting that value as correct assessable value then there cannot be any quarrel regarding t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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