Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (8) TMI 770 - AT - Central ExciseDetermination of Assessable Value - Job work - Undervaluation of the Goods - The assesses were manufacturers of dumpers/body built motor vehicles and accessories falling under Chapter 87 of the Central Excise Act - they were also engaged in building body on the chassis on job work basis - Department was of the view that the assesses had undervalued the goods to the extent that fully built up vehicles were sold at an higher price from the place of removal other than the factory gate - Held that:- The value of the goods supplied by the assesses was to be determined under Rule 10A of the Central Excise Valuation Rules, 2000 and not under Rule 6 – there was no infirmity in the Orders-in-Original with regard to valuation of the goods under Rule 10A of the Valuation Rules - Since the duty was required to be paid under Rule 10A, interest was also required to be paid on the duty quantified by the department – the Orders-in-Original with regard to confirmation of duty under Rule 10A of the Valuation Rules along with interest was upheld – Penalties were set aside. Following AUDI AUTOMOBILES Versus COMMISSIONER OF CENTRAL EXCISE, INDORE [2009 (5) TMI 426 - CESTAT, NEW DELHI] - once it was sought to be contended that Rule 10A will have no application in the facts of the case, it was for the assesses to produce relevant documents like the invoice and agreement which would support the case put forth by the assesses - it was necessary for the assesses to disclose the nature of the understanding between the manufacturer of chassis and the said firms, and in case, such understanding was in the form of writing, to place on record the document in that respect. It was apparent that the firms had cleared the goods in relation to the body fabricating and mounting on the chassis which were supplied to the said firms free of cost by the manufacturer of chassis - the activity for the purpose of valuation would squarely fall under Rule 10A and not under Rule 6 - Decided against assesses.
|