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2011 (1) TMI 1024 - CESTAT, MUMBAIUndervaluation - short levy of duty - Held that:- Commissioner (Appeals) has correctly recorded the facts of the case saying that 'appellant company has transferred sub-assemblies, which are in nature of semi-processed goods to their another unit situated at Pune for certain job work and returned due to tight delivery schedule. These transfers were effected on payment of duty and the receiving the factory used to take Modvat Credit. The valuation was done by the appellant on the basis of cost of manufacture and profits i.e., cost of raw material plus 15% described as transfer cost and 15% margin on the total of two'. As per Rule 57F, it is clarified that this sub-rule did not require the manufacturer to ascertain and declare the value of partly processed item and in this case the assessee has already paid the duty on the cost of inputs plus 32.25% of the cost of inputs as profits, which is definitely more than the duty required to be reversed. In this scenario, no infirmity with the impugned order, the same is upheld as appeal filed by the Revenue deserves no merits and the same is rejected.
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