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TMI Blog2024 (5) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... RISES VERSUS COMMISSIONER OF CENTRAL EXCISE, PONDICHERRY AND VICE-VERSA [ 2018 (2) TMI 139 - CESTAT CHENNAI] has examined an identical matter, wherein they have observed 'it needs to be mentioned that Rule 8 applies when goods are not sold. The goods (HDPE bottles) are sold by appellant to M/s. Marico. The appellant does not captively consume the goods nor does M/s.Marico consume it on behalf of appellant.' The impugned orders are not sustainable and merits to be set aside - Appeal allowed. - Hon ble Shri P. Dinesha , Member ( Judicial ) And Hon ble Shri M. Ajit Kumar , Member ( Technical ) Shri G. Krishnamoorthy , Advocate for the Appellant Shri N. Satyanarayanan , AC ( AR ) for the Respondent ORDER Per M. Ajit Kumar , This appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Chapter heading 3923.30.90 on job work basis out of the raw materials supplied by Marico Ltd. The goods received on job work basis were valued and cleared on the basis of formula laid down by the Hon'ble Supreme Court in the case of Ujagar Prints Ltd. reported in 1989 (39) ELT 493 (SC) i.e. on cost of raw material plus conversion charges including the job workers profit. The learned counsel submitted that their case was governed by Rule 10A(iii) of Valuation Rules, 2000 which states that in a case not covered under Clause (i) or clause (ii), provisions of the foregoing rules wherever applicable, will mutatis mutandis apply for determination of the value of the excisable goods. In their case, since Rule 4 to Rule 8 were clearly in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Coordinate Bench of this Tribunal in M/s. Bhavani Enterprises, Shree Mukambikai Polymers (supra) has examined an identical matter, wherein they have observed as under; 6. The issue posing for consideration is whether the appellants have correctly arrived at the assessable value of the job worked goods. The appellants have paid duty on the assessable value worked out by taking into account the cost of materials plus conversion cost as laid down in the case of Ujagar Prints. The principal manufacturer (M/s.Marico) used the bottles in its factory for filling coconut oil. The department therefore contends that assessable value has to be arrived as per Rule 8 of Valuation Rules, 2000. It is also contended that after 1.4.2007 the valuation shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sable goods are produced or manufactured by a job-worker, on behalf of a person (hereinafter referred to as principal manufacturer), then, - (i) in a case where the goods are sold by the principal manufacturer for delivery at the time of removal of goods from the factory of job-worker, where the principal manufacturer and the buyer of the goods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the transaction value of the said goods sold by the principal manufacturer; (ii) in a case where the goods are not sold by the principal manufacturer at the time of removal of goods from the factory of the job-worker, but are transferred to some other place from where the said goods are to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods, on the value of the said goods when cleared to the ultimate consumers. In the case in hand, we find that provisions of Rule 10A(1) and (ii) does not arise as has been recorded by us in the earlier paragraphs. Provisions of rule 10A(ii) gets attracted which talks about a situation where 10A(i) or (ii) does not apply. The said provision (illi) very clearly mandate that in a case not covered under clause (1) or (ii), the provisions of foregoing rules, wherever applicable shall mutatis and mutandis apply for determination of value of the excisable goods. This would Indicate that the provisions of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 has to be gone through serially. It is not the Revenue a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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