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2009 (6) TMI 773 - AT - Central ExciseValuation - clutch - includibility - welded with driving lugs - Job work - Held that: - It is not a case where the lugs were supplied free of cost by GSCL so as to be attached and welded to the clutch cover, in which case, their value was required to be added in the value of the final product. Welding of the lugs to the clutch cover was on job work basis in terms of Rule 4(5)(a) and under the cover of challans. GSCL had availed the credit on the lugs provided by them and the value of the same would be added in the final assembly manufactured by GSCL. As such, the duty on the lugs’ price would be discharged by GSCL. We find no reasons to add the value of such lugs in the value of the clutch covers manufactured by the appellant, especially when such job has been done by the appellant in terms of Rule 4(5)(a) of the Cenvat Credit Rules, 2002. Time limitation - Held that: - The movements of the driving lugs were under the cover of challan and in terms of Rule 4. As such, it can not be said that the appellants had any mala fide or any suppression/mis-statement with intent to evade payment of duty - All periodical returns were being filed by them, the driving lugs were being brought to the factory under the cover of challan and final product was also being covered under the cover of same challan - the demand is barred by limitation also. Appeal allowed - decided in favor of appellant.
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