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TMI Blog2018 (5) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... show cause notice for amortization of the cost of die and development charges toward the final product cleared by the appellant. Therefore, the show cause notice is defective. In this case also, the SCN is defective - appeal allowed - decided in favor of appellant. - Appeal No. E/550/2010 - Final Order No. 41546 / 2018 - Dated:- 23-5-2018 - Hon ble Ms. Sulekha Beevi C.S. Member ( Judicial ) And Hon ble Shri Madhu Mohan Damodhar, Member ( Technical ) Shri S. Durairaj, Advocate For the Appellant Shri Arjun Ragvendra, DC (AR) For the Respondent ORDER Per Bench After hearing both sides, the issue that comes up for decision is whether value of depreciation on technical know-how and the royalty paid to Directors of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rance should be valued separately. Ld. Advocate also relies upon the Tribunal s decision in the cases of Man Industries (India) Ltd. Vs CCE Indore 2015 (330) ELT 795 (Tri.-Del.) and Vineet Packaging Industries Vs CCE Delhi 2016 (344) ELT 1122 (Tri.-Chan.) 3. On the other hand, on behalf of Revenue, Ld.A.R Shri Arjun Ragvendra supports the impugned order. 4. Heard both sides. 5. We find that the issue is squarely covered in favour of appellant by the decision of Tribunal in the case of Man Industries (India) Ltd. Vs CCE Indore (supra) relied upon by Ld. Advocate. The relevant portion of that order is reproduced below : 6. We have perused the show cause notice. In the show cause notice, the duty has been demanded from the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty has not been demanded on the final product cleared by the appellant, therefore, the demand of duty on die development charges is not sustainable. 8. In these terms, we set aside the impugned order and allow the appeal with consequential relief if any. 6. The Tribunal in Vineet Packaging Industries (supra), has also taken a similar view. The relevant portion of the order is reproduced below : 7. In the present case, we find that in the name of amortization what has been done, is simply to take the value of Dies/Moulds and charge excise duty on such value. No effort has been made by the Revenue to arrive at the amortization cost of Dies/Moulds on scientific basis on the lines indicated above. We find it difficult to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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