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TMI Blog2018 (10) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... atterns, supplied free of cost by the buyer to the appellant - As per Rule 6 of Central Excise valuation Rules, 2000, the consideration equal to the value of the goods supplied free of cost has to be included in the assessable value - the amortization cost of pattern was rightly included by the lower authority in the assessable value of final product. Time Limitation - validity of second SCN - Held that:- The appellant has shown income from sales of patterns in the balance sheet from which no one can make out that whether the sales of pattern is related to those patterns which were used in the manufacture of final product for buyer by using pattern belonging to the buyer. Therefore, there is a clear suppression of facts and mis-declarati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the appellant. Accordingly, differential duty demand was raised which was upheld by Commissioner (A). 2. Shri Amal Dave, Ld. Counsel appearing on behalf of the appellant. He submits that as per the CA certificate submitted by the appellant amortized cost of pattern already included in the value of the finished goods manufactured and sold by the appellant. Therefore, there is no further addition in the assessable value as required. He also made a submission on limitation. He submits that both the Show Cause Notices involved in the present case were issued by invoking extended period. He submits that the issue was raised during audit of the account of the appellant. The sale of patterns was taken from balance sheet of the appellant. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ws: RULE 6. Where the excisable goods are sold in the circumstances specified in clause (a) of sub section (1) of section 4 of the Act except the circumstance where the price is not the sole consideration for sale, the value of such goods shall be deemed to be the aggregate of such transaction value and the amount of money value of any additional consideration flowing directly or indirectly from the buyer to the assessee. Explanation 1 - For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the following goods and services, whether supplied directly or indirectly by the buyer free of charge or at reduced cost for use in connection with the production and sale of such goods, to the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 100 per piece. No notional interest on the advance received by X is includible in the transaction value. Illustration 2. - A, an assessee, manufactures and supplies certain goods as per design and specification furnished by B at a price of ₹ 10 lakhs. A takes 50% of the price as advance against these goods and there is no sale of such goods to any other buyer. There is no evidence available with the Central Excise Officer that the notional interest on such advance has resulted in lowering of the prices. Thus, no notional interest on the advance received shall be added to the transaction value. As per the above Rule 6, the consideration equal to the value of the goods supplied free of cost has to be included in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in this regard we observed that the second Show Cause Notice is for the period which is prior to the period of first Show Cause Notice. Since, there is a clear suppression of facts in both the show cause notice, 5 years period is available to the Revenue for issuing the sub-Show Cause Notice. In the case of Hon ble Supreme Court judgment in the case of Nizam Sugar Factory (supra), the fact was different that for the same issue if a show cause notice for the subsequent period is issued invoking extended period, the demand is hit by limitation. However, in the facts of the present case, the second show cause notice period is not for the subsequent period but for the previous period. Therefore, the ratio of the Supreme Court judgment in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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