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TMI Blog2023 (8) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... drawings etc. used in production of excisable goods need to form the part of assessable value. In this case, there is no denying the fact that appellant has been collecting mould charges from the buyers of his product and therefore we hold that the amount of mould charges collected by the appellant forms an additional consideration flowing through the appellant and therefore the same need to be included in the assessable value of excisable goods. As per the provision of Central Excise law, the excisable goods first need to be assessed as per provisions of the Section 4 of Central Excise Act, 1944 read with Rule 6 of Central Excise (Determination of Price of Excisable Goods) Rules, 2000. It is irrelevant whether the goods have been cleared f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Act, 1944 for the purpose of discharging Central Excise liability. After due enquiries, following two show cause notices as well as the orders-in-appeal have been issued to the appellant:- Appeal No. OIA No. Period Duty Demand in Rs. E/10594/2020-DB CCESA-SRT (APPEAL) PS- 634/2019-20 Dated 26.02.2020 F.Y. 2014-15, 2015-16, 2016-17 89,37,902/- E/10598/2020-DB April 2017 to June 2017 12,15,760/- Total 1,01,53,662/- Thus, the sole issue on which the Revenue has confirmed the demand holding that amount of the charges recovered by the appellant towards the value of moulds should have been added in the transaction value of the glass bottles supplied by the appellant to their customers the mould charges recovered from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of exported goods. It has further been submitted that the appellant would have cleared goods on LUT or payment of duty or which would have been otherwise got refunded to them. In this way, the situation is absolutely Revenue neutral and there is no loss of Revenue to the government in this regard. Thus, it has been emphasized by the appellant that there is Revenue neutral and therefore, the impugned order-in-appeal is without any merit. Learned Chartered Accountant has relied upon the following judgments to support his arguments:- (a) Tytan Organics Pvt. Limited - 2018 (362) E.L.T. 280 (Tri. - Mumbai) (b) M/s Ultratech Cements Limited - 2015 (10) TMI 1058 CESTAT CHENNAI (c) Sterlite Industries (India) Limited - 2012 (2) TMI 575 BOMB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ideration to the appellant and should have formed part of transaction value for levy of excise duty or not. Before proceeding further, it will be relevant to have a look at the Section 4 of Central Excise Act, 1944 and Rule 6 of Central Excise (Determination of Price of Excisable Goods) Rules, 2000:- "Section 4 in the Central Excise Act, 1944 4. Valuation of excisable goods for purposes of charging of duty of excise.-- (1) Where under this Act, the duty of excise is chargeable on any excisable goods with reference to their value, then, on each removal of the goods, such value shall-- (a) in a case where the goods are sold by the assessee, for delivery at the time and place of the removal, the assessee and the buyer of goods are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the goods being valued and aggregated accordingly, namely : - (i) value of materials, components, parts and similar items relatable to such goods; (ii) value of tools, dies, moulds, drawings, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods. 7. The only argument the Learned Chartered Accountant has taken is that since the goods have been exported they will get a refund of additional duty which would have been paid at the amount of mould charges, included in the assessable value. In this regard we are of the opinion that as per the provision of Central Excise law, the excisable goods first need to be assessed as per provisions of the Section 4 of Central Excise Act, 1944 read with Rule 6 of Central Excise (Determination of Price of Excisable Goods) Rules, 2000. It is irrelevant whether the goods have been cleared for domestic use for the export purpose. The legally provided scheme of assessment of the goods needs to be followed while clearing the goods even if they are m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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