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2012 (3) TMI 360 - AT - Central ExciseValuation of goods - Determination of assessable value of goods - Held that:- Sofar as clearances of goods manufactured on job work basis concerned, during the period of dispute, the assessable value in respect of the such clearances was to be determined by applying the formulae prescribed in the Apex Court’s judgment in the case of Ujagar Prints & Ors (1988 (11) TMI 106 - SUPREME COURT OF INDIA) read with the clarificatory judgment in the same case reported in [1989 (1) TMI 124 - SUPREME COURT OF INDIA] and accordingly, on this basis, the assessable value has to be the cost of raw materials in the hands of job worker plus job charges plus job worker’s profit. The amount and designing charges would be part of the job charges. However, there is no scope for adding losses suffered by company or notional interest on interest free loans to this cost. In view of this, sofar differential duty in respect of the clearances of goods manufactured on job work basis is concerned, the assessable value has to be determined strictly in terms of the Apex Court judgment in Ujagar Paints (supra). However, if the Department doubts the assessable value of the job- work goods, the same can be got verified by appointing a Cost Accountant under Section 14A. As regards clearance to other group company alleged to be the related persons, for their captive consumption are concerned, there is no dispute that in respect of these clearances, the assessable value would be 115%/110% of the cost of production in terms of the provisions of Rule 8 of Valuation Rules, 2000 - However, the appellant’s plea, as mentioned in the grounds of appeal, is that they have not provided any C&F Agent service and in fact, they have received the service of C&F agent from some persons and the amount on which the Service Tax is sought to be charged is the amount paid by them to their C&F Agent. The Commissioner must examine this plea and ascertain the factual position. If the appellant are recipient of the C&F Agent services, the Service Tax cannot be charged from them as it is the service providers, who would be liable to pay Service Tax - Matter remanded back - Decided in favour of assessee.
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