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TMI Blog2019 (3) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... rge of duty liability by the principal manufacturer, transfer of the finished goods to the depots of the principal manufacturer after discharge of duty liability by the job-worker and final clearance thereafter. Till the delivery of the goods to the ultimate buyer of ‘built-up vehicles’, the valuation for the purpose of determination of duties of central excise is the cost of manufacture. The price at which goods are cleared by M/s Tata Motors Ltd to their authorized dealers includes, other than the cost of manufacture, the cost of transportation and the profit component. The adoption of this price for determining the duty liability in the hands of the principal manufacturer is not in any way prejudicial to Revenue and, therefore, cannot be a cause of grievance to the tax authorities. Appeal allowed - decided in favor of appellant. - E/904/2008-DB & E/26/2009-DB - Final Order No.20240-20241/2018 - Dated:- 7-3-2019 - MR. S.S GARG, JUDICIAL MEMBER And MR. C.J. MATHEW, TECHNICAL MEMBER Mr. G. Shridharan, Advocate For the Appellant Mr. Pakshirajan, AR For the Respondent ORDER Per: C.J. MATHEW M/s Hyva (India) Ltd, a manufacturer of bus bodies on be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learance of the finished product back to M/s Tata Motors Ltd, to compute the duty liability on the cost of manufacture of the goods produced by them and that they, for the valuation of inputs, viz., chassis , had no option but to adopt the invoice price at which these were delivered to them. He contends that the adoption of any other value by the jurisdictional central excise authorities was tantamount to revision of the assessable value in their hands and, therefore, contrary to settled law. Pointing out that statutory levies incorporated in the price at which goods are sold are to be excluded, under section 4(3)(d) of Central Excise Act, 1944, it is his claim that this exclusion cannot be legally added back. He also contends that it is not the case of Revenue that the freight element has not been included in the price at which chassis are cleared to their dealers; the adding back of such amount that was never deducted in the first place from the assessable value did not have the authority of law. On these two latter aspects of the dispute, we find that Revenue is in error in their insistence upon inclusion for the purposes of computation of duty liability. Being contrary to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lity determined at the end of the supplier cannot be reopened for the purposes of ascertaining the duty liability at the end of the recipient. According to him, the issue of valuation, in situations such as theirs, has been resolved by the Tribunal in Eicher Motors Ltd v. Commissioner of Central Excise, Indore [2008 (228) ELT 43 (Tri-LB)]. 5. Learned Authorized Representative urges us to reject the various submissions made on behalf of the appellant. According to him, the passing on of discount in the impugned transaction is incorrect as the appellant-assessee is clearly a job worker and, the goods being captively consumed, there is no sale and there can be no providing of discount to oneself. According to him, M/s Tata Motors Ltd did not have to follow this elaborate process of having the credit of duty availed by the job worker and that this complication was implemented with ulterior motive. 6. According to us, the resolution of the dispute lies within the narrow compass of identification of the particular rule to be adopted for determination of the assessable value on clearance of the fully built vehicle by the appellant-assessee to M/s Tata Motors Ltd, the supplier o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent from 20. The submissions do not cut any ice. What has to be seen is whether Bhilwara Processors was decided in accordance with the ratio of Ujagar Prints-III. After noticing the decisions in Ujagar Prints-III and Pawan Biscuits Co. (P) Ltd., in a rather brief order, the Tribunal held that it found merit in the submission that assessable value for processed fabric is to be arrived at by adding the processing charges and the processing profit to the cost of grey fabric supplied. Reliance was particularly placed on the observation in Pawan Biscuits Co. (P) Ltd., quoted hereinabove, that the cost of raw material supplied by Britannia will have to be included in addition to the appellant s manufacturing cost and profit of raw material . We have already dealt with the decision in Pawan Biscuits Co. (P) Ltd. and held that that there was no departure from the legal position settled in Ujagar Prints-III. We have also explained the relevance of the word cost observing that value of an intermediate product when used as raw material, is cost of the raw material but for the purpose of determining its assessable value at the hands of job worker, what is relevant is the value and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the adjudicating authority had erred in adding back the freight and cess. The cycle of commercial activity in the impugned transaction involves transfer of the chassis to the appellant-assessee, discharge of duty liability by the principal manufacturer, transfer of the finished goods to the depots of the principal manufacturer after discharge of duty liability by the job-worker and final clearance thereafter. Till the delivery of the goods to the ultimate buyer of built-up vehicles , the valuation for the purpose of determination of duties of central excise is the cost of manufacture. The price at which goods are cleared by M/s Tata Motors Ltd to their authorized dealers includes, other than the cost of manufacture, the cost of transportation and the profit component. The adoption of this price for determining the duty liability in the hands of the principal manufacturer is not in any way prejudicial to Revenue and, therefore, cannot be a cause of grievance to the tax authorities. 8. In the light of our findings supra, we cannot but differ with the impugned order in its entirety. Accordingly, we set aside the demand of duties of central excise, along with interest thereon, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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