2006 (10) TMI 19

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... includes their margin of profit. However, these tools/dies are not physically handed over to M/s. Ashok Leyland but are kept with them for further manufacture of components and parts of motor vehicles for M/s. Ashok Leyland. Admittedly, while arriving at the cost of components and parts manufactured by them for M/s. Ashok Leyland, amortised cost of tools and dies is being included in the cost of components and parts.   2. Vide their impugned order, the authorities below, have held that since tools and dies became the property of M/s. Ashok Leyland and as the same are further being used for manufacture of components and parts, the cost of the same for the purposes of amortization has to be arrived at by including notional margin o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... parts which in turn have a value. To this value must be added amortised value of each tool and dies and to arrive at the correct amortised value, apart from the original sale price of tool and die plus excise duty plus CST, there must be added the notional margin of profit of M/s. Ashok Leyland to arrive at the correct total value amount which when divided by the tool life would arrive at the correct amortised value. This notional margin of profit of M/s. Ashok Leyland has not been added while arriving at the total value amount and hence the amortised value. The margin of profit which the appellant is harping upon is their own margin of profit which has duty been added while arriving at the sale price at which the tools and dies are sold to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s only when sale is made."   5. We find force in the above reasoning of the Commissioner's (Appeals) order. It is the cost of tools/dies at the hand of M/s. Ashok Leyland, which has to be taken into consideration for arriving at the assessable value of the parts and components and no further margin of profit of M/s. Ashok Leyland has to be added to the value of such dies/tools. The above view finds support from the Tribunal's order in the case of Gansons Ltd. v. Collector of Central Excise, Nagpur reported in1998 (99) E.L.T. 238 (Tribunal). 6. In view of the  foregoing, we set aside the impugned order and allow the appeal with consequential relief to the appellants. (Dictated in the open Court) - - TaxTMI - TMITa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X