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2020 (3) TMI 907 - AT - Central ExciseValuation - crank cases - job-work - captive consumption - applicability of Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 read with Rule 10A ibid - demand of short paid duty alongwith interest and penalty - extended period of limitation - HELD THAT:- There was no scope for treating the appellant as an agent of M/s. M & M in any respect and for any purpose whatsoever. It is also made clear that M/s. M & M has agreed to purchase the components from the appellant and further, it has also an insurance clause requiring insuring of premises as well as the equipment with premia being paid by the appellant - There is no dispute that the appellant has in fact discharged the duties before supplying the goods in question to M/s. M & M which is based on the purchase price, as given in the respective agreements. This indicates that the goods in question have been manufactured by the appellant at a cost and thereafter, cleared on payment of duty. It is not the case here by the Revenue that the manufacturer, i.e., the appellant, is only getting the job work charges which should have been the case if it is a job work simpliciter; nor has the Revenue established that the goods manufactured by the appellant are supplied free of cost to M/s. M & M. Any amount of supervision per se, may not be sufficient to treat the assessee-appellant as a job worker - there are no merit in the impugned orders on the merits as well as on the principles of consistency and consequently, the same are set aside. Extended period of limitation - HELD THAT:- Revenue was aware of the method adopted by the assessee since the Revenue itself had conducted periodical audits from 2011 onwards, documents evidencing which, are also part of the Paper Compilation - there is no scope at all for the Revenue to allege suppression, fraud, etc., to invoke the larger period of limitation. Appeal allowed - decided in favor of appellant.
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