9911796707
TMI Blog2016 (9) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... customers were received in their factory under invoices. It is also on record that the appellant has availed the Cenvat Credit of the duty paid on such Dies/Moulds upon their return to appellant’s factory for use in the manufacture of goods for the customers. It is not clear whether through such invoices only the Cenvat duty paid on the Dies/Moulds have been returned or whether the cost of such Dies/Moulds also stands returned. In the latter case, the dies/Moulds would effectively become free supply in the hands of the appellant. The value of the goods manufactured by the appellant should include the appropriate fraction of the cost of Dies/Moulds as it have been given in the explanation of Rule 6, but, we are not convinced that the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of duty. Since these facts were noticed only in audit, allegation of evasion of the Central Excise duty was made and duty of tune of ₹ 2,60,528/- was demanded with interest and imposition of penalty. 3. The appellant has challenged the impugned order mainly on the following grounds: (i) Under Rule 6 of Central Excise Valuation Rules, 2000, the value of Dies/Moulds supplied free of cost needs to be included in the assessable value of finished goods. However, in the present case excise duty has already been paid on the Dies/Moulds. Hence, there is no need to adopt Rule 6. (ii) There was no loss of revenue to the government because there was alternative available to not charge excise duty by taking exemption under the Notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, namely;- (i)-------- (ii) Value of tools, dies/moulds, drawing, blue prints, technical maps and charts and similar items used in the production of such goods. (iii) ------ 6. This rule is attracted when Dies/moulds are supplied by the buyer free of charge or reduced cost for use in connection with the production and sale of such goods. In cases, where the Dies/Moulds are supplied free by the customers, the amortization is to be done and a fraction of the cost is to be added to the value of each item by considering the following: (1) The total number of pieces which can be manufactured using the said Dies/Moulds in its entire life, or (2) In case, the life of Dies/Moulds is determined in terms of the period eg. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
