9911796707
TMI Blog2005 (8) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... 6(b)(ii) of the Valuation Rules, 1975. Both the lower authorities relied on the Board's Circular No. 258/92/96-CX, dated 30-10-1996 and included the profit margin of the final products in the cost of the semi-finished piston rings in order to arrive at the assessable value. The appellants' contention is that profit margin required to be included should be only a notional profit margin and not the profit margin earned on the final products. The lower authorities adjudicated their case for different period from September 1997 to September 1999 and demanded differential duty of Rs. 5,89,722.00. The Commissioner (Appeals) upheld the lower authority's order. (b) E/48/2003 The appellants filed a refund claim for an amount of Rs. 25,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )] has held that the assessable value of the captive consumption items has to be computed by the method of cost accounting, delinked from the margin of profit of the end-product. Similar rulings were held in the following cases:- (1) CCE v. Festo Elgi Pvt. Ltd. [1998 (98) E.L.T. 617 (Tri.)] (2) Groz Beckert's case [1998 (101) E.L.T. 512] (iii) For the semi-finished piston rings sent to the appellant's Patiala unit also, there is no comparable goods cleared by them as admitted in the Show Cause Notice itself. Hence on the basis of the above-mentioned case laws, profit margin of the final/end-product cannot be taken into account while arriving at the profit margin of the semi-finished piston rings also. (iv) Even ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct cannot be mechanically applied to captively consumed items without considering the various factors. The Division Bench of the Hon'ble High Court of Karnataka in the Writ Appeal Nos. 771 772/1989 has held as follows:- "We are entirely in agreement with the view taken by the learned Single Judge to the effect that in respect of nuts, bolts, screws and cutting tools which are intermediate products manufactured by the respondent and which ultimately become component parts of finished goods, the only reasonable method that could be adopted, having regard to the facts and circumstances of the case, has to ascertain the manufacturing cost of these items in the first instance by cost accounting method and to add 10 per cent as the margin o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view of my decisions to reject the appeal filed against the Order No. 87/2000-C.E., appeal bearing No. 129/2001 becomes infructuous." In our view, the action of the Original Authority is not proper when the appeal in the same case was pending, he could not have appropriated the refund towards the demand which was pending before the Commissioner (Appeals). Moreover, the appeal filed against Order No. 87/2000-C.E. and rejected by Commissioner (Appeals) relates to valuation of semi-finished piston rings which is the subject matter of appeal before this Tribunal in E/37/2003 which we have decided in appellant's favour. Hence, there is no merit in the Commissioner's (Appeals) order. The ratio of the decision of the High Court of Madhya Prades ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
