TMI BlogValuation of Jobwork when material dicrectly supplied by principal manufacturerX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, Valuation of Jobwork includes Cost of material, processing charges, freight and profit. My query is does cost of material includes excise and sales tax also when raw material supplied directly by the principal manufacturer and payment done by principal manufacturer. Some Particulars of the CASE 1. ABC - Principal Manufacturer 2. XYZ - Jobworker 3. Final Product - TIN Container 4. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Raw Material - TIN Plate 5. Process - Manufacturing of TIN Container for the packing of Edible Oil 6. Raw Material payment done by the ABC directly 7. Freight Payment done by ABC directly. 8. Final Product of ABC is Exempted from duty (Edible Oil) 9. Job worker taking cenvat credit on Raw Material - TIN Plate. Illustration :- Rate per tin calculated by the jobworker Ass. Val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of Raw Material (Tin Plate) Add: VAT/CST Add: Freight ------------------------- Basic Value of TIN (Manufactured) (without considering excise) Add: Job charges Add : Excise Add : CST / VAT -------------------------- Gross Total (Billed to Principal Manufacturer) Query : (1) Whether excise should be considered while calculating cost of material to derive ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sic value of TIN manufactured or not. ?? (2) Is there any clarification / notification / circular in supporting to this ?? Your reply awaited. Thank you - Reply By Pradeep Khatri - The Reply = Dear Mehul,In Texmaco Ltd. vs. CCE, 1995 (77) E.L.T. 501 (SC) = 1991 (7) TMI 109 - SUPREME COURT OF INDIA , Supreme Court had held that value of article was full intrinsic value of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticle including cost of material and components supplied free by the customer. Assessable Value will be full commercial value.This is for your kind information.RegardsTeam YAGAYand SUN(Managementand Indirect Tax Consultants) - Reply By MUKUND THAKKAR - The Reply = Dear Mehul. In connection of please refer rule 10 along with the rules 8.9. Mukund Thakkar - Reply By PAWAN KUMAR - The Reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... = Dear Sir, As per your query, the answer is as under : 1.Excise duty will not be considered. 2.You may read Ujaagar Print Case. - Valuation of Jobwork when material dicrectly supplied by principal manufacturer - Query Started By: - Mehul Pandya Dated:- 22-7-2014 Central Excise - Got 3 Replies - Central Excise - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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