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2015 (10) TMI 1685 - AT - Central ExciseValuation of the goods - Job works - benefit of Notification No. 38/97-CE dated 27/06/1997 and Notification No. 9/98-CE dated 02/06/1998 - Held that:- Appellant was receiving 80% by weight LDPE and 20% by weight LLDPE. However, while manufacturing the goods they were using 50% of LDPE and 50% of LLDPE. The additional LLDPE required was purchased from the local market and the excess quantity of LDPE received was detained by the appellant. Since the prices of LDPE and LLDPE are different and LDPE is comparatively costly material the difference in value has to be taken as additional consideration and hence will form part of the job-work. Accordingly, we hold that the difference in price of LDPE and LLDPE is required to be added for computation of the assessable value. - When the disputed period is 01/01/1998 to 31/03/1998 there is no reason to taken into account the value of LLDPE for the earlier or subsequent period. Either the appellant has to provide one-to-one co-relation of each consignment used in the manufacture of the goods or the average value during the period of three months required to be added. Since on-to-one co-relation of the value are not available, we order that the method adopted by the Revenue is correct and accordingly the value computed as also the turnover for the year 1997-98 is correct and the appellant will not be eligible for the benefit of Notification No. 9/98-CE dated 02/06/1998 for the subsequent period i.e. 1998-99. This is a clear case of suppression of facts and also willful mis-statement. The appellant have not declared that they are replacing the LDPE received from their customer by LLDPE, which is a cheaper material and it was only during investigation the same could be found out. We therefore, hold that extended period of limitation has been correctly invoked and penalty under Section 11AC is correctly imposed. - Decided against assessee.
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