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TMI Blog2016 (12) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... fected from May 2000 to March 2003 in the case Commissioner of Central Excise, Mumbai-I Versus Colgate Palmolive (I) Ltd. [2011 (2) TMI 636 - CESTAT, MUMBAI], where it was held that no evidence is brought on record either in form of statements or contracts which would indicate that the prices charged by the respondent for the aromatic compounds were influenced in any way or that they were abysmally low - Since the self same issue has already been decided by the bench for the subsequent period and for the earlier period, the adjudicating authority by an order dated 31.3.2000 has held the same we do not find any merits in the appeal filed by the revenue. As an identical issue for the subsequent period in respect of the very same respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid on Rs. cost plus basis during the impugned period. The Assessee themselves accepted that the 5 entities were their Contract Manufacturers/ Job workers and hence, submitted Cost Certificates. The CCE has not addressed this point at all She has completely side tracked this principal issue. b. The Assessee refused to address the issue of Cost of Manufacture plus Profit raised in the SCNs The SCNs have raised demands upon the basis of Cost of manufacture plus profit ire. the basis on which duty was being paid by the Assessee uptil the Department doubted the correctness of by The CCE dealt with this issue at all. She has accepted the value, declared by the assessee on the basis of Cost details as the normal price without assigning a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... depresses the sate price of finished goods by Contract Manufacturers to the Assessee. f. The Apex Court has in CCE Vs Fiat India Pvt. Ltd. 2012 (283) ELT 161 (SC) has held that if cost of production is more than the sales price then duty liability needs to be discharged on cost of production. Hence, the exercise undertaken by the Department through the issue of these 4 SCNs, to know the actual manufacturing cost plus profit of the goods is a valid exerciser The Assessee could not have sold the goods at lesser than the manufacturing cost. case they have done so, the goods have to assessed on at least the manufacturing cost, Assessee had submitted Cost Certificates which were found to be incorrect. The assessable values listed in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of mutuality of interest and transaction at arm's length but observed Rs.that M/s. Prompt India was extending help to the appellants by way of identifying the source of supply of raw materials, negotiations for price for the same and also by supplying drawings and technical specifications for manufacture of goods in addition they have also put their quality control Engineers to do the check and supervision which is directly relatable to manufacture of goods As it is the price for sale has been stated to be fixed between the appellants and M/s. Prompt India based on negotiations done orally. The basis adopted for price fixation for goods in question has not been revealed What emerges from the above is that the price charged cannot be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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