9911796707
TMI Blog2016 (2) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... red as such from the gross composite price at the depot. The differential assessable value needs to be taxed. So far as rate of duty applicable on the goods is concerned, it is noted that there is no evidence that any activity was being undertaken on the said goods at the depot. The goods are cleared from the depot in the shape in which they were received, although as part of a larger basket of goods, also containing certain inputs cleared as such. In these circumstances, it cannot be said that a different rate of duty can be applied to the parts manufactured by the appellant in their factory premises. The rate of duty is fixed when the parts leave the factory. It is only the value that needs to be re-determined in view of composite cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the goods cleared from depot under composite contracts. The appellants, on their own, did reverse calculation from the value of composite contract to arrive at the gross assessable value of the goods sold at the depot. On the excess differential value collected by them, they were paying Central Excise duty of 5%/8%, which was applicable to the medical equipment manufactured by them during the relevant time. The Revenue issued show-cause notices seeking to demand duty on this value @ 15%, 18% and 20%. 2. Learned Counsel for the appellant challenged the manner in which calculations for the differential value have been made. He also argued that the rate of duty applicable to the differential value would be 5% or 8%, the rate applicable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual credit taken by them. The learned Counsel has very correctly determined the method of arriving at the additional amounts received at depot, which can be attributed to the assessable value of the goods manufactured by them at the factory gate. It is arrived at after deducting (i) Sales tax, (ii) excise duty paid at factory, (iii) CENVAT Credit reversed for inputs cleared as such and, (iv) assessable value of manufactured goods and inputs cleared as such from the gross composite price at the depot. The differential assessable value needs to be taxed. 4.1 So far as rate of duty applicable on the goods is concerned, it is noted that there is no evidence that any activity was being undertaken on the said goods at the depot. The goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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