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TMI Blog2014 (12) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 and they also makes tools, moulds and dies falling under Item No. 8207 99 00 of the Tariff which are used in the manufacture of components. The appellant manufacture component for motor vehicle parts for their various customers as per their designs and for manufacture of the motor vehicle parts, while developing tools, moulds and dies, they were charging separately for those items. For development of tools and dies, they were receiving money in advance from their customers. However, it was found they have not included the amount charged for development of the tools, moulds and dies in the assessable value of the motor vehicle parts manufactured. Accordingly, a show cause notice dated 5-7-2011 was issued to the appellant for demand of sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave strong prima facie case in their favour and, hence, the requirement of pre-deposit of duty, interest and penalty may be waived for hearing of the appeal and recovery thereof may be stayed till the disposal of the appeal. 4. Shri Amresh Jain, the learned Departmental Representative, opposed the stay application by reiterating the findings of the Commissioner (Appeals) and emphasized that the cost of developing dies, moulds and tools had been paid by their customers, that in terms of Rule 6 of the Central Excise Valuation Rules, 2000, the value of tools, dies and moulds received by the appellant from the customers had to be treated as additional consideration in respect of sale of motor vehicle parts and would have to be included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to additional consideration and one such instance of additional consideration is the tools, dies, moulds, drawings, blue prints, technical labs, charts and similar items used in the production of goods, which had been received from the buyer free of charge or at reduced cost for use in connection, the production of the goods. Thus, the value of the moulds, dies and tools developed for each customer for manufacture of the motor vehicle parts for him and whose cost has been fully reimbursed by the customers, would have to be treated as additional consideration and their amortized value should have been included. But this has not been done. Thus, the appellant have not been able to establish prima facie case in their favour and conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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