9911796707
TMI Blog2025 (3) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... assessing their liability of central excise duties and filing returns in form ER-1 and were subjected to central excise audit from time to time. During the periodical audit conducted by the revenue for the period from April 2007 to September 2009, it was observed that the appellant is engaged in manufacture of 'insulated copper wire'/ 'bare copper wire' on job work basis for their customers, M/s. Suzlon Generators Limited; M/s. General Electric limited; M/s. Integrated Electric Company Limited. The basic raw material viz 'copper rods' is supplied by the customer and the appellant purchases 'insulation material' from the market and manufacturers 'insulated copper wires' as per the specifications of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 32,60,657 along with interest was demanded and the proposed imposition of penalty under section 11 AC, ibid. The adjudicating authority confirmed the demand of duty of Rs.32,60,657 along with interest and also imposed equal penalty of Rs. 32,60,657 under Section 11 AC of the Central Excise Act, 1944. On appeal before Commissioner (Appeals) the appeal was rejected. Aggrieved by the impugned order this appeal is filed before the Tribunal. 3. The learned counsel for the appellant during the hearing reiterated the grounds urged in the appeal and submits that; the facts are undisputed and more importantly the final products manufactured and cleared on job work basis are further used by the customers in their manufacture and the goods clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 8 of the Central Excise Valuation Rules, 2000 is applicable only in a case where the goods are used for captive consumption within the factory or if it is used by other company on their behalf; in their case the goods manufactured on job work is neither used by the appellant themselves for captive consumption nor the same are used by other companies/customers viz., Suzlon Generators Limited; General Electric limited; Integrated Electric Company Limited on behalf of the appellant, therefore Rule 8 is inapplicable. In support of the above contention the learned counsel relied on the following case laws; (a) CCE V. Palco Metals Ltd. - 2011 (23) STR 389 (Tri.-Ahmd.) (b) Tara Industries Ltd. V. CCE - 2003 (161) ELT 758 (Tri.-Del.) (c) Un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... records. 8. We find that in this case the department has demanded duty by determining the value of the goods cleared by the appellant to their customers viz., Suzlon Generators Limited; General Electric limited; Integrated Electric Company Limited, on the grounds that the valuation has to be determined under Rule 10A(iii) of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 read with Rule 8 and Rule 9. The appellant contended that in their case the goods are manufactured utilizing the raw material that is 'copper rods' supplied by the customers and they procured the 'insulation material' and then manufactured 'copper wire'/ 'bare copper wire' and supplied to their customers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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