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2015 (2) TMI 604 - CESTAT NEW DELHIValuation - Determination of job charges - Revenue argued that assessee have wrongly excluded the sale price of the spent Sulphuric Acid from job charges which is not correct - Held that:- When the job charges consist of the conversion charges plus the cost of the raw material belonging to the job worker which were used by him, the cost of only that much quantity of raw material would be required to be included in the job charges which has actually been used. On going through the calculation of the processing charges, annexed with the job work agreement, we find that this is what the assessee have done. The landed cost of 1.1 MT of Sulphuric Acid required for manufacture of 1.45MT of Sulphonic Acid (by treating one MT of LAB) is ₹ 1980/- and in the process 0.8 MT spent acid is generated, which was sold by the assessee for ₹ 380/-. The assessee, therefore, have treated the cost of the Sulphonic Acid used as ₹ 1980 minus ₹ 380, that is, ₹ 1600/- and accordingly, after adding the conversion charges of ₹ 700/- per MT have taken the job charges as ₹ 2300 per MT and it is on the basis of these job charges that the assessable value has been determined after adding the cost of LAB. We find no mistake in the practice adopted by the appellant - Decided against Revenue.
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