TMI Blog2013 (12) TMI 1288X X X X Extracts X X X X X X X X Extracts X X X X ..... ign of dies etc. for the purpose of excise duty demand has been decided by the SC in Moriroku UT India (P) Ltd. Vs. State of UP[2008 (3) TMI 513 - SUPREME COURT OF INDIA] - amortized cost should be included in the price of auto components supplied for the purpose of levy of excise duty. The cost of the product sold would include not only the cost of raw materials, labour charges and other costs but also the various cost incurred in the manufacture such as cost of capital goods like machinery, tools, dies, etc. - if the appellant has not included the amortized cost of dies or the cost of drawings and designs developed for the manufacture of excisable goods, the consideration received would be includable in the assessable value of the goods m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the goods manufactured with these drawings and designs for the purposes of payment of duty. The appellant also issued debit notes for charges towards technical study and assistance to develop an indigenous 10PO8 pressure die cast item at the request of the customer. The appellant did not include the cost of amortization in the value of castings manufactured using these dies. Accordingly, a show-cause notice was issued proposing to include the charges recovered from the customers towards drawing, design and development of dies used in the manufacture of goods by the appellant and to demand excise duty amounting to Rs. 15,28,000/- short paid by the appellant during 1998-99 to 1999-00. Another show-cause notice was issued to the appellant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dies developed and they were eligible for the benefit of Notification NO. 67/95. Therefore, the question of payment of duty on these amounts by including their cost in the goods manufactured would not arise. 3.1 As regards the Service Tax demand, it is contended that the department cannot simultaneously ask the appellant to pay excise duty on the charges collected as also Service Tax thereon. The drawings and designs developed by the appellant or the dies manufactured are goods and they are not services and, therefore, the question of demand of Service Tax would not arise at all. Similarly, in respect of debit note dated 23.2.2000 for a sum of Rs. 75,000/- raised on Bajaj Auto Ltd., in this case also the appellant had collected this amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on M/s Subros Ltd. for a sum of Rs. 53 lakhs shows that the charges are for technical study and assistance to develop 10PO8 pressure die cast item. It is therefore evident that the duty demand is towards the Pressure Die Cast Item for manufacture of the products supplied to M/s Subros Ltd. Thus, there is no vagueness in the show-cause notice. In any case, it is the appellant who has charged for the drawings and designs of the dies and therefore, the purpose for which the same is charged and the goods manufactured using these drawings and designs are very well known to the appellant. Therefore, it cannot be pleaded that the appellant did not know in respect of which item, the undervaluation has been alleged and the differential duty is bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble value of the goods manufactured using these drawings and designs. Therefore, the demand of excise duty in the present case has to be sustained in law. 5.2 As regards the demand of Service Tax under the category of Consulting Engineers Service for the period prior to 1.5.2006, the law envisaged that the liability to pay Service Tax on rendering of Consulting Engineers Service would be on the Consulting Engineering firm. The appellant herein is a manufacturer and not a Consulting Engineer. Only w.e.f. 1.5.2006, the law was amended to include any body corporate' rendering such services liable to pay Service Tax. Since in the present case, the period involved is prior to 1.5.2006, the Service Tax demand on the appellant is not sustainabl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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