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TMI Blog2018 (1) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... e product which will be supplied by M/s Zydus - It is evident from the above clause of the agreement that the goods are to be manufactured from inputs supplied by the suppliers identified by M/s Zydus which clearly satisfies as the third condition in the Explanation to Rule 10A. Further on perusal of the various clauses of the agreement read together leads to the conclusion that the goods have been manufactured by the appellant as a job worker on behalf of M/s Zydus. Once we conclude that the appellant has acted as a job worker for M/s Zydus the mischief of Rule 10A of the Valuation Rules becomes applicable and the goods are required to the valued on the basis of the price at which the principal manufacturer, M/s Zydus sells such goods f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt to M/s Zydus on payment of excise duty on the transaction value. The department was of the view that the inputs were manufactured by the appellant on job work basis for M/s Zydus and hence the valuation of the goods for purposes of charging excise duty were to be done in terms of Rule 10A of the Central Excise (Determination of Price of Excisable Goods) Rules, 2000. After issue of the show cause notice, the authorities below have demanded differential excise duty by adopting the basis of charging excise duty as the price charged by M/s Zydus at the time of clearance of the goods from their depot (as per Rule 10A(ii) instead of the price charged by the appellant to M/s Zydus. The period under dispute is April 2010 to May 2011. Aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only as per the specifications and using the technical knowhow made available exclusively by M/s Zydus to the appellant. Further, the raw materials are to be procured only from the suppliers identified by M/s Zydus and out of the vender list supplied by them. He finally submitted that in terms of Rule 10A of the Valuation Rules, the duty has been rightly charged at the price at which M/s Zydus is selling the goods. The ld. DR relied on this judgement in the case of Jabil Circuit India Pvt. Ltd. Vs. CCE, Pune-III - 2013 (295) ELT 29 (Bom.). 5. We have heard both sides at length and perused the appeal record. Since, the entire dispute is revolving the Rule 10A of the Central Excise Valuation Rules, the same is reproduced below for read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 6. The transaction between the appellant and M/s Zydus are governed by the agreement termed as Manufacturing Agreement . The appellant has manufactured and supplied the goods in terms of the agreement, at prices included in the agreement as per the negotiation between the two parties. The claim of the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... WL. 9. It is evident from the above clause of the agreement that the goods are to be manufactured from inputs supplied by the suppliers identified by M/s Zydus which clearly satisfies as the third condition in the Explanation to Rule 10A. Further on perusal of the various clauses of the agreement read together leads to the conclusion that the goods have been manufactured by the appellant as a job worker on behalf of M/s Zydus. 10. The above conclusion is further reinforced by the fact that in a case of principal to principal transaction the goods are to be priced including all the elements of cost involved in the manufacture and sale of goods. In the present case, from the price agreed between two parties it is obvious that various ..... X X X X Extracts X X X X X X X X Extracts X X X X
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