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2015 (7) TMI 584 - AT - Central ExciseValuation of goods - clearance of fresh manufactured goods and goods after reprocessing - inclusion of amortizing cost of moulding - Credit had been taken under Rule 16 of the Central Excise Rules, 2002 in respect of the consignments of plastic moulded furniture returned from the distributor for being re-made / re-manufactured - Held that:- It is seen that this statement of Shri G.M. Bhandari is not corroborated any other evidence and not only this, when the statements of Shri K.K. Maheshwari, Director of the appellant company and of Shri Harinder Kumar Garg, Manager of the appellant company were recorded they were also not confronted with this statement. In view of this we hold that merely on the basis of statement dated 23/07/2002 of Shri G.M. Bhandari, it cannot be presumed that in past also, the appellant had taken CENVAT Credit under Rule 16 of the Central Excise Rules, 2002 in respect of the old and used plastic furniture received by them which had not manufactured and cleared by the appellant on payment of duty. In view of this, the CENVAT Credit demand of ₹ 6,61,719/- along with interest and equivalent penalty is not sustainable. As regards the dispute regarding including the amortized cost of moulds in the assessable value of the goods, the appellant themselves conceded that the same would be includible. However, the dispute in this regard is over the method of calculation. In our view, the amortized cost must be calculated in accordance with the Board's Circular No. 170/4/96CX dated 23/1/1996, i.e., the cost of the mould divided by the total quantum of production which can be made by using that moulded multiplied by the number of pieces manufactured as cleared. There is no dispute that if the amortized cost is calculated in this manner, out of the duty demand of ₹ 7464/- and the duty demand of ₹ 2936/- can be confirmed. Accordingly, the duty demand of ₹ 2936/- is confirmed and the rest of the demand on this count is set aside. Re-moulding charges are for the expenses incurred for re-processing and re-manufacturing of the goods and the same cannot be treated as consideration for the goods earlier cleared on sale. In view of this, we hold re-moulding charges are not includible in the assessable value and as such the duty demand of ₹ 1,73,427/-along with interest and equivalent penalty is not sustainable. - only duty/CENVAT Credit demand of ₹ 54096/- along with interest and equivalent penalty is upheld and the remaining duty/CENVAT Credit demand along with interest and equivalent penalty is set aside - Decided partly in favour of assessee.
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