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TMI Blog2014 (5) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... with Cenvat credit facility under Notification No. 09/2003-C.E. dated 01.3.2003 as amended from time to time, in respect of their clearances up to the value of Rs. 1 crore and paying normal rate of duty thereafter in a financial year. Vide their letter dated 31.7.2004, the appellants intimated jurisdictional Range Officer that they got two turnkey project works in Cuddapah and Nellore Districts and relevant contract price schedules were submitted, depicting the particulars of various aspects of the works to be executed under the said agreements. The appellants also informed that cost of each 15 KVA and 25 KVA DTR was Rs. 15,257/- and Rs. 15,757/- respectively for the purpose of turnkey projects in both the operation circles of Cuddapah and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les 2000, the assessable value for the purpose of levy of duty in respect of 15 KVA and 25 KVA transformers worked out to Rs. 18,080/- and Rs. 23,448/- respectively. Further on going through the case records, it was found that the appellant has shown 50 litres and 56 litres transformer oil had been included into the cost of each transformer of 15 KVA and 25 KVA respectively at the rate of Rs. 30/- per litre. However, as per guaranteed technical specification in the relevant contract, a quantity of 70 litres and 85 litres transformer oil should have been utilized in the manufacture of 15 KVA and 25 KVA transformers respectively. After adding the oil and provisional profit and finding the value still less than the value arrived under Rules 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evertheless, show-cause notice was issued on 12.8.2005 invoking suppression and mis-declaration and proposing to revise the assessable value and demand of differential duty with interest and imposition of penalty as above. We find that what the department has done is to add the freight element from the factory gate to the sites in respect of transformers by invoking Rule 7 read with Rule 11 of the Central Excise Valuation Rules and also calculate the assessable value on the basis of transformer oil requirement indicated in the contract and adopt the one whichever is higher. There is no finding or evidence to show that actual quantum of oil used was higher than what was indicated in the CAS-4 and why the Chartered Accountants certificate ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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