9911796707
TMI BlogAssessable value of goods subjected to value addition by processes not amounting to manufactureX X X X Extracts X X X X X X X X Extracts X X X X ..... assessable value has to be calculated on the galvanized black pipe and the cost of galvanisation must form part thereof. The black pipes were subsequently galvanized in a separate section of the manufacturer called Galvanized Shed, but Supreme Court did not consider the shed a separate factory. You have raised a doubt as to whether the ratio of Siddharth Tubes case can only be applied if the processes such as galvanisation or coating, said to be processes not amounting to manufacture, are undertaken inside the same premises and has desired to know whether such value addition will be liable to duty if the goods manufactured are cleared to another premises outside the factory, for doing subsequent processes which may not amount to manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the original manufacturer of the product if there is no sale to these units / job worker. 2. The referring department's note at pre-page explains the reference. Based on the reference it is observed that one of the positions that may arise is where the goods manufactured in the factory premises are subjected to further process in a shed within factory premises. The other position would be where the goods are manufactured in the factory premises and are subsequently transferred to another unit / job worker outside the factory premises for further process. In the former case, this aspect was considered by the Apex Court in the case of Siddharth Tubes Ltd. Vs Collector of Central Excise, 2000 (115) ELT 32 SC and the Apex Court has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation where the duty paid goods have been subject to further process in a premises other than the factory premises, no further value addition can be made to charge duty. Such a situation as aforesaid, would be covered by J.G.Glass (Supra) case as the ratio therein is the law as laid down by the Apex Court and continues to be so as in the case of Siddharth Tubes J.G.Glass (Supra) case neither has been considered not has till date been overruled by any subsequent Apex Court decision. 4. In view of the above, we advise that the judgement of the Siddarth Tubes ltd. (Supra), does not enable the department to charge duty on value addition outside the factory of clearance on account of certain processes not amounting to manufacture of manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
