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TMI Blog2015 (2) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... ods. However, in this regard, the Commissioner has adopted value of the drawing as 10 per cent of the value and the goods for which he has not given any justification. On the other hand, the appellant's plea is that in the cases where the drawings and designs have been supplied by the customer, their cost is 0.1% of the value of the goods and in this regard, they rely upon the Chartered Engineer's Certificate. While cost of drawings and designs as 10% of the value of the goods adopted by the department is arbitrary, unreasonable and without any basis and same cannot be accepted, the Commissioner while rejecting the value claimed by the appellant based on the chartered engineering certificate has to give reasons for the same. - Impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s who did not supply their old drawings and designs, that transaction value to independent buyers at the factory gate is available and that price has to be adopted as assessable value, in respect of sales to Customers who were supplying the drawings and designs, that when the price under section 4(1) (a) is available, there is no justification for applying section 4(1) (b) and the Central Excise Valuation Rules, that drawings and designs by the customs had not constituted additional consideration and that accordingly the impugned order is not correct. 5. Sh. Pramod Kumar, ld. JCDR defended the impugned order by reiterating the findings of the Commissioner. He pointed out to the Commissioner s findings in para 22.2. of the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the cases where the customers had not supplied the drawings and designs, the appellant prepared the drawings and designs. The dispute is in this case where the drawings and designs of the goods were supplied by the customers. Accordingly, the point of dispute is as to whether in the cases where drawings and designs have been supplied by the customers, whether the same are to be treated as additional consideration and their value is includible in the assessable value of the goods in terms of Rules, 6 of the Central Excise Valuation Rules, 2000 according to which where the assessable goods are sold in the circumstances specified under clause (a) of section 4 (1) of the Act except the circumstance where price is not the sole consideration f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arbitrary, unreasonable and without any basis and same cannot be accepted, the Commissioner while rejecting the value claimed by the appellant based on the chartered engineering certificate has to give reasons for the same. 9. In view of this, the impugned order is set aside and the matter is remanded back to the Commissioner for requantification of the duty demand and for this purpose if he finds that the value of the drawings and designs as certified in the chartered engineering certificate is not acceptable, he should give the reasons for the same and adopting any other value, he must give justification for the same. But arbitrary value like 10 per cent of the goods cannot be adopted for this purpose, without giving adequate basis for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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