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TMI Blog2020 (6) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of suppression of facts, alleging the non disclosure of actual sale value of the scrap received from the Railways. There is no obligation cast on the appellant to intimate the Department on each and every transaction. The appellant have filed regular returns with the Department and have maintained proper records. Further, the appellant have obtained statement of cost of production‟ duly certified by the Cost Accountant, who have considered various elements of cost like raw material, salary and wages, direct expenses and work overheads, quality control cost, administrative overheads, packing cost etc. as required under the Central Excise Valuation Rules read with CAS-4 guidelines (Cost Accounting Standards) as adopted by the Gov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that there was a specific mention that the raw material i.e. copper scrap/ cad copper supplied by Railways shall only be used for manufacture of goods meant for clearance to Railways. Further, on examination of the inspection certificate issued by RITES Limited, (third party inspection), it was seen that goods for Indian Railways have been manufactured by using 100% pure copper scrap / cad copper, supplied by Indian Railways. On scrutiny of sales invoices in respect of finished goods supplied to Indian Railways, it was mentioned by the appellant in the column of product, in the sale invoices, that stranded copper wire/ conductors have been manufactured by using 100% pure scrap/ cad copper, supplied by Railways. 3. Statement of the Prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken cenvat credit on such inputs. It further appeared that the appellant manufactured stranded wire / conductor on job work basis for Indian Railways, as per the said purchase order. Indian Railways had specified the basic rate (job charges) of fabrication and supply of finished goods being stranded enamelled copper wire/ jumper etc. Further, for supply of 100 MT of finished stranded copper conductors / jumper wire, a quantity of 102.50 MT of pure copper scrap was made available to the appellant by the Railways. Such supply of copper supplied by Railways was made against Bank Guarantee furnished by the appellant. 4. It was further seen by the Revenue, that after manufacture for the Railways, the appellant had cleared the same by assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1944, in respect of goods manufactured on job work basis, valuation would be governed by Rule 11 of new Valuation Rules of 2000, read with Rule 6 read with the relied upon two rulings of the Apex Court. 5. It further appeared to Revenue that while considering the lesser price of copper, in determination of the assessable value, the appellant have short paid Central Excise duty of ₹ 11,54,855/- during the period from August, 2007 to May, 2009, which appear to be recoverable for the period August, 2007 to May, 2009. It further appeared that the appellant have suppressed the facts from the Department by not disclosing the actual sale value of scrap received from Railways, and clearing the same clandestinely. Therefore, extended perio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited. Such clearance is on sale basis. Further, it is admitted fact that appellant received copper rods from the said two manufacturers as inputs. Further, such copper rods have been received from the said two manufacturers of copper rods, alongwith duty paying documents. The adjudicating authority have upheld the liability of cenvat credit to the appellant on receipt of such copper rods, admittedly utilised for manufacture of stranded copper wire, etc. and supply of the same to Indian Railways. Thus, under the facts and circumstances, there is no case of suppression made out. The issue is wholly interpretational in nature. The appellant have obtained the certificate of Cost Accountant and have relied upon the same for their activity of jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n each and every transaction. The appellant have filed regular returns with the Department and have maintained proper records. Further, the appellant have obtained statement of cost of production‟ duly certified by the Cost Accountant, who have considered various elements of cost like raw material, salary and wages, direct expenses and work overheads, quality control cost, administrative overheads, packing cost etc. as required under the Central Excise Valuation Rules read with CAS-4 guidelines (Cost Accounting Standards) as adopted by the Government of India for Central Excise purposes. We find that such cost certificates have been obtained each orderwise, as received from Railways during the period under dispute. 10. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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