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2011 (11) TMI 26 - SC - Central ExciseSupply of caps along with tubes - Penalty under Rule 173-Q and Section 11-AB of the Act - The appellant manufactured plastic tubes in its factory and supplied the same to M/s Colgate Palmolive (I) Ltd - caps are manufactured separately and not in the same factory in which the tubes are being manufactured - Heldd that:- if the caps are manufactured separately and not in the same factory in which the tubes are being manufactured, the caps cannot form integral part of the assessable value of the tubes, manufactured and cleared from the factory. - If in the present case, the caps are not manufactured in the factory of the appellant but are being supplied by the customers of the appellant, the value of the caps will not form part of the assessable value of the tubes manufactured by the appellant. The Commissioner, therefore, will have to record a clear finding as to whether for the tubes cleared during the three relevant periods, the caps were supplied by the customers of the appellant free of cost and accordingly pass a fresh order.
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