Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 945 - AT - Central ExciseValuation of goods - Job work - addition of value of scrap - duty liability has been discharged on the price at which the job-worked goods were sold by the principal manufacturer - Held that:- Appellant has discharged the duty on the sale price of M/s SAIL, which was the principal manufacturer. Therefore, the provision of sub-rule (i) of Rule 10A is clearly attracted. Only in a case where the sub-rule (i) & (ii) are not attracted, the transaction can be covered to sub-rule (iii) of Rule 10(A) - As regards the transaction pertaining to M/s KEC International and M/s RPG Transmission Ltd., the demand pertained to the period April, 2007 to December, 2010, whereas the show-cause notice has been issued only on 27.7.2011. Therefore, the demand for the period April, 2007 to June, 2010 would be clearly time barred and the demand cannot be sustained in law. We further see that the appellant has discharged the duty liability on the scrap, which has been generated and the transaction could have been undertaken under Rule 4(5)(a) of the Cenvat Credit Rules. If the appellant had followed the said procedure instead of paying duty, the question of inclusion or exclusion of value of the scrap would not have arisen at all. In these circumstances, the question of addition to value of scrap, is not sustainable. - Decided in favour of assessee.
|