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TMI Blog2014 (4) TMI 1115X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of the highest price without considering the type of material and other transaction does not appear to be supported by any legal provisions. The rule itself provides for normal transaction value and determination of normal transaction value which has been given a go-bye by the learned Commissioner. In the order as well as in the show cause notice, there is absolutely no disclosure as to what were sales made to independent purchasers and at what price and who are the purchasers and there is also no discussion as to why such price could not have been adopted. There is also no evidence to show that the manufacturer and buyer and the job worker are related. In such a situation, we do not find that Department has made out a clear case of u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cordance with CAS4 and finding that according to CAS4 certificate, the value according to the cost of production would come to more than the price at which the goods were sold in some cases, proceedings were initiated. The Commissioner in the impugned order has determined the assessable value by applying the provisions of Rule 11 of Central Excise (Valuation) Rules and he has added profit margin of 41.48% being the highest profit earned by the appellant in the sales to independent buyers other than job workers. On this basis, the differential duty has been demanded from the appellant on the ground that there was undervaluation. The period involved is December, 2007 to January, 2009 and the amount involved is ₹ 1,52,83,090/-. Penalty u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding profit margin, in some cases is lower than the price at which goods have been sold to independent buyers. He submits that Commissioner has rightly invoked the provisions of Rule 11 of Central Excise (Valuation) Rules to arrive at the price. 4. We have considered the submissions made by both the sides. In this case, there is no dispute that the appellants had engaged several job workers to manufacture the goods. There is also no dispute about the admissibility of the benefits. The question is only of valuation. Since we are considering only stay application at this stage and in view of the fact that if Rule 10A cannot be applied, the provisions of Rule 11 which have been applied by the Commissioner would be applicable in our opini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , shall mutatis mutandis apply for determination of the value of the excisable goods : Provided that the cost of transportation, if any, from the premises, wherefrom the goods are sold, to the place of delivery shall not be included in the value of excisable goods. Explanation. - For the purposes of this rule, job-worker means 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. It can be seen that in this case, in our opinion, quite clearly the issue is covered by Rule 10A(1) of Valuation Rules. In this case, goods have been sold by the principal manufacturer from the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the highest price without considering the type of material and other transaction does not appear to be supported by any legal provisions. The rule itself provides for normal transaction value and determination of normal transaction value which has been given a go-bye by the learned Commissioner. In the order as well as in the show cause notice, there is absolutely no disclosure as to what were sales made to independent purchasers and at what price and who are the purchasers and there is also no discussion as to why such price could not have been adopted. There is also no evidence to show that the manufacturer and buyer and the job worker are related. In such a situation, we do not find that Department has made out a clear case of un ..... X X X X Extracts X X X X X X X X Extracts X X X X
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