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2018 (5) TMI 2045 - AT - Central ExciseMethod of Valuation adopted by the assessee - Job-Work - supply of raw materials and packing materials to M/s Alcon Industry Limited as who manufactured ‘patent and proprietary medicaments’ in their capacity as ‘job-worker’ - adoption of cost construction method after June 2003 - HELD THAT:- It is seen that the orders of the lower authorities have relied upon the licence held the principal manufacturer M/s Alkem Laboratories Limited, to determine the duty liability on the selling price of the goods instead of considering M/s Alcon Industries Ltd as ‘job-worker’ and liable to duty at the value determined by ‘cost construction method’. In COMMISSIONER OF CENTRAL EXCISE, GOA VERSUS M/S. COSME FARMA LABORATORIES LTD. [2015 (4) TMI 355 - SUPREME COURT] it has been held by the Hon'ble Supreme Court that Once it has been determined that the job workers are the manufacturers, the assessable value of the goods would be a sum total of cost of raw material, labour charges and profit of the job workers, as per circular No.619/10/2002-CX dated 19th February, 2002 and the law laid down by this Court in the case of Pawan Biscuits (2000 (7) TMI 78 - Supreme Court) and other cases. In such a case, the price at which the respondent brand owner sells its goods would not be the assessable value because the duty is to be paid at the stage at which the goods are manufactured and not at the stage when the goods are sold. The impugned order has erred in determining the differential duty liability - Appeal allowed - decided in favor of appellant.
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