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2012 (11) TMI 358 - AT - Central ExciseExtended period of limitation – royalty payment to parent company – valuation – manufacture of Lifts and Elevators and Parts thereof – alleged that they had entered into works contract with the customers for erection and installation of lifts and elevator - there was no assessable value available for the final products sold to the customers in respect of components manufactured factory and cleared for captive consumption at site - Since the components/parts manufactured by the appellants are being used captively the value thereof is required to be determined under the Valuation Rules and the value is being determined on the basis of costing basis after adding the profit element in the cost - while determining the cost of production the royalty charges are required to be limited upto the manufacturing stage only and the other activities like sales, erection and service are not to be taken into account while computing the cost of production of the components used captively - appellant has not declared to the department that they were paying royalty charges to their parent company - extended period has rightly been invoked by the adjudicating authority and consequently the penalty is rightly imposed under Section 11AC of the Act - matter remanded back to Commissioner for de novo adjudication - Appeal is disposed of by way of remand
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