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2019 (1) TMI 1659 - AT - Central ExciseValuation - wool tops and polywool yarn - job-work - Since M/s. Raymond Woollen Mills Ltd. had undervalued the cost of input, the department contended that the final product manufactured by the appellant was also undervalued - applicability of Rule 4 or Rule 6 of CER - HELD THAT:- The learned Commissioner (Appeals) has recorded the submissions of the appellant made before him in the appeal memorandum, contending inter alia, that the supplier M/s. Raymond Woollen Mills Ltd. was a Central Excise registered assessee and the valuation declared by them was duly accepted by the jurisdictional Central Excise authorities and the assessment was also final. However, the impugned order has not recorded any findings with regard to such submission of the appellant. With regard to consideration of assessable value for payment of central excise duty, the independent job worker is required to include the price at which the job worked goods would leave its premises along with the profit margin. Post manufacturing profit in the hands of main manufacturer should not be considered as the element of assessable value for determination of the duty liability - Thus, as an independent manufacturer, the assessable value is determinable under Section 4(i)(a) of the Act and there was no necessity of going into the Valuation Rules for such determination. Further, Rule 6 of the Valuation Rules is only applicable to the case of captive consumption and not to the goods manufactured on job work basis. Hence, such rule cannot be applicable in the present case, The appellant had appropriately discharged the central excise duty liability on the goods manufactured on job work basis and supplied to the supplier M/s. Raymond Woollen Mills Ltd. as the goods had been subject to valuation as required in Section 4 of Central Excise Act, 1944 before arriving at the factory of the appellant - Whenever a value is to be utilized for the purposes of implementing the Central Excise Act, 1944, only such value as ascertainable under Section 4 can be adopted. When that value is challenged in the hands of the principal manufacturer, a different value cannot be utilized at the appellant’s end. Appeal allowed - decided in favor of appellant.
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