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TMI Blog2010 (7) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... Biscuits Co. (Pvt.) Ltd., (2000 -TMI - 45451 - SUPREME COURT OF INDIA) should also be taken into consideration - The orders passed by the lower authorities do not disclose the compliance of the said instructions nor the same disclose any logical and reasonable basis for adoption of principles of 115% of the cost of production as provided under Rule 8 - Hence, the orders passed by the lower authorities are unsustainable and are liable to be set aside and the matter remanded to the adjudicating authority to apply the correct provisions. - E/1054/2009 - A/8/2011-WZB/C-II(EB) - Dated:- 27-7-2010 - Justice R.M.S. Khandeparkar, Shri P. Karthikeyan, JJ. REPRESENTED BY : Dr. D.M. Mishra, Advocate, for the Appellant. Shri B.P. Pareira, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the principle of 115% of the cost of production as provided under Rule 8 of the said Rules, show cause notice dated 2-1-2002 came to be issued to the appellants. The same was contested by the appellants, however, the adjudicating authority confirmed the demand as stated above. The matter was carried in appeal without any fruitful result to the appellants. Hence, the present appeal. 5. Perusal of the order passed by the adjudicating authority it is apparent that there is no dispute about the facts relating to the manufacturing activities by the appellants. In response to the show cause notice, the appellants have stated that apart from the appellants being engaged in manufacture of excisable goods viz., chemical injection, skid system, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the Rule 11 provides that the valuation shall be determined using reasonable means consistent with the principles and general provisions of the Valuation Rules, 2000 and Section 4(1) of the Central Excise Act, 1944, it would be well within the Rules to adopt the principles of 115% of the cost of production as provided in Rule 8 . 7. The Commissioner (Appeals) in its order has held that the value of the goods manufactured on job-work had to be determined under Rule 11 of the Central Excise Valuation (Determination of Prices of Excisable Goods) Rules, 2000 in terms of the Board s Circular dated 19-2-2002. Thus, the demand confirmed by the adjudicating authority has to be upheld. 8. Perusal of the Circular No. 619/10/2002-CX., dated 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gar Prints Ltd. and Pawan Biscuits Co. (Pvt.) Ltd., 2000 (120) E.L.T. 24 (S.C.) should also be taken into consideration. The orders passed by the lower authorities do not disclose the compliance of the said instructions nor the same disclose any logical and reasonable basis for adoption of principles of 115% of the cost of production as provided under Rule 8. 10. The observations of the adjudicating authority quoted herein above do not disclose logical approach while applying the principles of 115% of the cost of production. On one hand, the authorities have held that considering the fact; that the appellants are neither using the products for themselves or on behalf of the ONGC for captive consumption nor they are sold by the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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