9911796707
TMI Blog2018 (4) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... insurance from the principal manufacturer to the appellant. But the appellant has claimed that the value taken by the principal manufacturer for payment of duty on the raw material includes the cost of such freight and insurance - the correct landed cost of the raw materials will need to be worked out with the support of the certificate of the authorized/qualified Cost Accountant. Revenue neutrality - Held that: - Any duty paid by the appellant will be available to the principal manufacturer as Cenvat credit, since the entire manufactured goods are returned to them - the entire exercise is Revenue neutral. Extended period of limitation - Held that: - the allegation of suppression made by the Revenue is not sustainable - demand of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uation Rules. Demand amounting to ₹ 49,09,387/- stands confirmed in the impugned order along with interest and penalty. 2. The appellant has challenged the impugned order mainly on the following points:- i) Rule 10 A (i) and (ii) of the Central Excise Valuation Rules will not be applicable to the facts of the case since the intermediate products manufactured by the appellants was neither consumed by the principal manufacturer on behalf of the job worker or by the job worker. The situation is covered by Rule 10 A (iii) according to which the valuation is required tobe done as per Rule 11 ibid. In that view the valuation needs to be finalized on the basis of the cost of the raw materials plus processing charges as prescribed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rules will have no application in the facts of the present case. The duty payable by the appellant on the intermediate goods will need to be discharged on the basis of cost of the raw materials plus processing charges as held by the Apex Court in the case of Ujahar Prints Ltd. The adjudicating authority appears to have proceeded on the above lines for determination of value but has chosen to add a notional amount @ 1.14% of the cost of the raw materials supplied by BIL to arrive at the assessable value. The justification for such addition is to cover the expenses of freight and insurance in the transport of raw materials from the principal manufacturer to the appellant. We note that the landed cost of the raw materials at the appellant s pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
