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2014 (4) TMI 720 - AT - Central ExciseValuation of goods - nature of transaction - pure sale purchase or Job work - whether the valuation adopted by SGSPL for discharging the Central Excise duty on the goods manufactured by them is correct or the Revenue is correct by demanding the duty on the value of the goods based upon the sale price of the goods in the market and to hold whether SGSPL is a job worker under the provisions of Rule 10A of Central Excise Valuation Rules, 2000 or otherwise - Held that:- agreement which was entered by the SGSPL with Atlantic was prior to 01.04.2007. The said date is important as the provisions of Rule 10A came into existence from that date i.e. to say that the appellants were engaged in manufacturing and clearance of the product with the said atlalntic prior to introduction of said provisions on the very same terms and conditions. We also find on perusal of the agreement that the agreement indicate the sale and purchase of the goods from the said SGSPL to Atlantic and Petronas. he first distinction in the valuation of excisable goods required to be made is whether under Section 4 of the Central Excise Act, 1944, the transaction is one of sale or a case of manufacture of goods from inputs and goods supplied by principle manufacturer. In the later option, the manufacturer should get only the job charges for converting the inputs/goods but the predominant part of the inputs or goods is required to be supplied free of charge by the principle manufacturer to the job worker. Such supply of inputs/goods free of charge has not been established by the Revenue Valuation under Section 4(1) of Central Excise Act, 1944 is sought to be discarded on the ground that the price is not the sole consideration in these cases. In our view, in situations where price is not sole consideration, it does not mean that invariably Department has to resort to the valuation under Rule 10A of Central Excise Valuation Rules, 2000. In our view, the conditions required for bringing the assessee under the provisions of Rule 10A of Central Excise Valuation Rules, 2000 have not been properly appreciated by the adjudicating authority in this case - Following decision of Ravikiran Plastics Pvt.Ltd [2014 (2) TMI 211 - CESTAT AHMEDABAD] - Decided in favour of assessee.
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