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2019 (7) TMI 1795 - AT - Central ExciseValuation - inclusion of landed cost of the raw materials and conversion charges, which includes the margin of profit of job-worker in the assessable value - job-work - arm's length price - HELD THAT:- In analyzing the facts in de novo proceedings, learned Commissioner (Appeals) though accepted the facts that there is no evidence to establish that the relation between the appellant and M/s Marico Industries Ltd. are not at arm’s length and on principal to principal basis as alleged by the Revenue and also the activities carried out by the appellants in manufacturing the goods are on job-work basis, but failed to determine the assessable value of job-worked goods correctly. The principles of law laid down in UJAGAR PRINTS ETC. ETC. VERSUS UNION OF INDIA & OTHERS [1989 (1) TMI 124 - SUPREME COURT] is squarely applicable to the present case inasmuch as the landed cost of the raw materials and conversion charges, which includes the margin of profit of job-worker, is the basis for arriving at the assessable value of the job worked goods in the hands of the job worker. Therefore, the proposal to include the overheads of the supplier of raw materials purchased from the open market and delivered directly at the premises of the appellant, cannot form part of the assessable value. Inclusion of Landed cost of the raw material in assessable value - HELD THAT:- The same includes the element of freight as well as transit insurance being evident from the sample copies of the invoices placed by the appellant in the paper book. Therefore, the method of assessment of job worked goods arrived at by the adjudicating authority on the basis of C.A. certificate is correct and in accordance with the law. For the limited purpose of verification of the sample invoices submitted before this forum, the matter is remanded to the adjudicating authority - appeal allowed by way of remand.
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