9911796707
TMI Blog2008 (2) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... t an order of the Commissioner, Chennai-III. The impugned order demanded duty on clearances of credit availed capital goods and processed inputs. 2. Appellants manufacture shock absorbers and parts falling under CSH 8708.00 and 8714.00. During 1996-97 to 2000-01, HL had cleared inputs got processed by job workers to its sister units and subsidiary RAPSHL paid duty on these removals considering aggregate of raw material cost, transportation and labour charges of the job worker as the value. A show cause notice was issued initially on 27-7-01 and an addendum issued on 2-1-02. In the addendum demand was enhanced revising the cost of processed inputs including more elements towards cost of production. The impugned order confirmed a demand ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he correctness of value adopted for duty payment on these clearances and Internal Audit had raised similar observations later. Assessee had been enquired by the authorities in this regard in 1998. Appellants have placed on record correspondence in this regard. Moreover, assessee appears to have entertained a genuine belief that Ujagar Prints formula of valuation applied in the situation. Goods removed were job worked inputs. HL did not do any manufacturing activity. Therefore the valuation applicable to manufacture by job worker applied. Even in 2001, the department was uncertain about the method of valuation to be adopted and an addendum to the demand notice was issued in 2002. Therefore, the argument of the assessee of bona fide cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee, or a sub-distributor of such distributor; or iv. they are so associated that they have interest, directly or indirectly, in the business of each other." Central Excise Valuation Rules, 2000 "RULE 8. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be [one hundred and ten per cent) of the cost of production or manufacture of such goods. RULE 9. When the assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions. Therefore the duty, interest and penal liabilities for this period have to be reconsidered and decided afresh. 6. In this context the appellants have raised the following valid points. (i) In determining cost of the impugned goods, profit relatable to the concerned product alone need to be considered. Commissioner had reckoned the profit of all the units on the basis that the Balance Sheet is common. (ii) In determining cost of the impugned goods, selling and distribution expenses need not be included as these expenses are not incurred for these goods. (iii) CAS 4 has to be strictly followed. Commissioner had not followed CAS 4 and the instructions of the CBEC in this regard. The adjudicating authority is also di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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