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TMI Blog2019 (1) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... d goods. Since, the said value is in accordance with Section 4, the permissible deduction such as transportation is also available to the appellant. CENVAT Credit - Held that:- The goods of the said invoices were admittedly used by the appellant for job work. The same has been endorsed by the department by taking cost of raw material from the same invoices. In this position merely because the name of the appellant is not appearing on the invoices, Cenvat Credit cannot be denied - credit allowed. The valuation of job worked goods computed by the department on the basis of cost of raw material + job work charges is incorrect. Therefore, the adjudicating authority must re-quantify the duty on the value arriving on the basis of sale pric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of oil mills. These oil mills owners than sent the tin plates for converting into metal tin container on job work basis to M/s Bijal Packaging and M/s B B Containers. On inquiry it was found that the edible oil manufacturer for whom the metal tin container were manufactured on job work basis revealed that metal tin container purchased from the said unit used to have their logo and name duly embossed; that till edible oil was dutiable, they used to avail job work procedure; that in some cases they outrightly purchased metal tin container from the unit and that the same were not job work; that in some cases the metal tin plates were transferred to the said unit for conversion into container on job work basis, that in some cases they showed pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k basis, the sale price will apply instead of the value adopted in principle of M/s Ujagar Prints. He submits that in that case when sale price of the goods sold to the buyers is applied, the differential duty would stand reduced substantially. He further submits that once the sale value is applied, the deduction permissible under Section 4 shall also be applied. In the present case. The deduction amount of transport cost is permissible, the same is also to be considered while calculating the actual duty liability. He further submits that the adjudicating authority has denied the cenvat credit on the ground that the invoices were issued by M/s Shriji Packaging to the principal manufacturer, therefore, on the invoice the appellant name is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oil manufacturing company. The said tin containers were manufactured on job work basis as well as the same containers were sold on principal to principal basis. In this fact as per the Larger Bench judgment of the Tribunal in the case of M/s Ispat Industries Ltd. (Supra), the sale price charged to the independent buyers shall apply even in case of job work. In the said judgment it is observed that once the value under Section 4 i.e. transaction value is available then there is not need to resort to Section 4(1)(B) and Valuation Rules, 2000. In view of the Larger Bench judgment, we are of the considered view that the excise duty liability should be computed considering the sale value charged to the independent customers as the assessable va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of tin plate to the appellant. 5. As per our above discussion we hold that the valuation of job worked goods computed by the department on the basis of cost of raw material + job work charges is incorrect. Therefore, the adjudicating authority must re-quantify the duty on the value arriving on the basis of sale price of tin container applied to the independent buyer. The appellant is also entitled for deduction of transportation in accordance with law. The appellant is also entitled for the Cenvat Credit on the raw material i.e. tin plates on the invoices though not in their name. Considering all these aspects, demand may be re-quantified. Considering the facts and the circumstances, of the case and the issue involved is interpretation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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