9911796707
TMI Blog2014 (12) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... th interest thereon and also imposed an equivalent amount of penalty on the appellant, M/s Shilpa Steel & Power Ltd. Aggrieved of the same, the appellant is before us. 2. The appellant, M/s Shilpa Steel & Power Ltd., undertook job-work from M/s KEC International Ltd., M/s Steel Authority of India Ltd. (SAIL) and M/s RPG Transmission Ltd. They procured raw material from these clients and manufactured Angles, Shapes and Sections on job-work basis and returned the same to the supplier of raw materials. The bulk of the demand pertains to job-work relating to M/s SAIL and out of the demand of Rs. 64.22 lakhs, the demand pertaining to the transaction with M/s SAIL is Rs. 62.92 lakhs. 3. The learned Counsel for the appellant submits that the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the findings of thee adjudicating authority. 5. We have carefully considered the submissions made by both the sides. 5.1 In the adjudication order, the adjudicating authority has taken a view that Rule 10A(iii) is the relevant rule applicable and not Rule 10A(i). On the basis of Rule 10A(iii), he has determined the duty liability. We have carefully perused the Rule 10A as amended by the amendment rules in 2007. Rule 10A at the relevant time read as follows:- RULE 10A. Where the excisable goods are produced or manufactured by a job-worker, on behalf of a person (hereinafter referred to as principal manufacturer), then,- (i) in a case where the goods are sold by the principal manufacturer for delivery at the time of rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him." 5.2 A reading of the above rule clearly shows that where the goods are sold by the principal manufacturer for delivery at the time of removal of the goods, where the buyer of the goods is not related and price is the sole consideration, the value of the goods shall be transaction value of the goods sold by the principal manufacturer. In the present case, the appellant has discharged the duty on the sale price of M/s SAIL, which was the principal manufacturer. Therefore, the provision of sub-rule (i) of Rule 10A is clearly attract ..... X X X X Extracts X X X X X X X X Extracts X X X X
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