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2022 (6) TMI 537 - CESTAT CHENNAIValuation of Excisable Goods - scrap generated during the course of manufacture of tractor parts on job work basis - whether the value of scrap arising during the process of manufacture and retained by the job worker is includible in the value of the goods cleared by the job worker to the principal manufacturer? - HELD THAT:- The said issue was considered in detail in the case of PR. ROLLING MILLS PVT. LTD. VERSUS COMMISSIONER OF C. EX., TIRUPATHI [2009 (3) TMI 444 - CESTAT, BANGALORE]. The issue was held in favour of the assessee therein. In the present case, it has to be noted that while estimating the value of the goods cleared to the principal manufacturer, the appellant has taken the value of the entire raw materials received by them. The scrap generated during the process of manufacture has been cleared by them on payment of appropriate duty. The scrap is generated after the process of manufacture and the same is not includible in the assessable value of the goods cleared by the job worker to the principal manufacturer. The demand cannot sustain - Appeal allowed.
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