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TMI Blog2018 (2) TMI 917X X X X Extracts X X X X X X X X Extracts X X X X ..... ges have been fully included in the value on which duty has been paid by the appellant. There definitely is a depression in the value adopted by the appellant proportionate to the value of the scrap - decided against appellant. Time limitation - Held that: - there is no bonafide on the part of appellant, therefore, the appellant s plea on limitation which also fail. Appeal dismissed - decided against appellant. - E/716/2010 - Final Order No. 40345/2018 - Dated:- 5-2-2018 - Ms. Sulekha Beevi, Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Ms. D. Naveena, Advocate for the Appellant Shri K. Veerabhadra Reddy, JC (AR) for the Respondent ORDER Per Bench The brief facts of the case are that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the Hon ble Supreme Court in the case of General Engineering Works Vs. CCE, Jaipur 2007 (212) ELT 295 (S.C.) prima facie is against them, however, the said judgment pertains to a period prior to 01.07.2000 for the earlier Valuation Rules when Rule 6 did not have the Explanation which was later introduced. She further submits that on similar issue for other another group company, vide OIA No. 69/2006 dated 26.03.2006 the Commissioner (Appeals) had allowed the appeal of Raaja Magnetics Ltd., on identical facts. Hence, the issue in their case can be said to be hit by limitation, since for the group company similar issue had been decided in their favour. She further submits that suppression of facts cannot be alleged since they were under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old of by them: 5. It must be clarified that the value of scrap would be included in the value of the points and crossings only in case where it is shown that the conversion charges get depressed by the fact that the processor is allowed to keep and sell the scrap. Thus in the example given above, it would have to be shown that the conversion charges are ₹ 450/- because ₹ 50/- is earned from the sale of scrap. If the conversion charges are not depressed or if the scrap/waste is returned then, their value will not get added. 6. The burden of proving that the price is so depressed would be on the Revenue. But one of the methods of proving it would be through the contract between the parties itself. In this case the contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case CEGAT has held that the value of scrap is not to be included in working out the value of points and crossings. CEGAT has so held on the basis that in working out the value of points and crossings, the entire value of the raw material supplied was taken into consideration and also that excise was being paid on the scrap which had been sold. CEGAT has so opined even though an earlier decision of CEGAT in the case of Jay Engineering Works Limited v. Commissioner of C. Ex. Hyderabad reported in 1997 (93) E.L.T. 492 (Tribunal) had been brought to its attention. In our view, CEGAT has gone completely wrong in Hindustan Engineering Industries Limited s case (supra). It must be remembered that the element of raw material is a separate e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which were in force prior to 01.07.2000, will not be applicable to their case. We are unable to appreciate this contention. True, Rule 6 of the Valuation Rules introduced on 01.07.2000 has amplified the earlier Rule 6 and as also added an Explanation thereto, however, even in the new Rules, there is no provision for non-inclusion of value of scrap where job worker has retained the scrap or sold it of. It is also not the case that the entire value of landed cost plus rate charges plus job work charges have been fully included in the value on which duty has been paid by the appellant. There definitely is a depression in the value adopted by the appellant proportionate to the value of the scrap. Although Ld. Advocate submits that this reduct ..... X X X X Extracts X X X X X X X X Extracts X X X X
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