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2016 (4) TMI 58 - AT - Central ExciseValuation of the goods manufactured on job-work basis - sale at processor's factory-gate needs to be loaded with the trader's profit and discharge excise duty or otherwise - Held that:- The assessable value should be the value worked out based on the cost of the material and the job-work charges. The Revenue's claim that the respondent had collected over and above the job-charges in the form of cutting, checking and packing of the processed fabrics is without any evidence and there is nothing on record to indicate that these charges were not included in the job-work charges which were being paid by the said Risha to the respondent. The goods at which the processing house sells the goods must be the value of the grey cloth or fabric plus the value of the job work done plus the manufacturing profit and the manufacturing expenses but not any other subsequent profit or expenses. It is necessary to include the processor's expenses, costs and charge plus profit, but it is not necessary to include the trader's profits who gets the fabrics processed, because those would be post-manufacturing profits. We also find that the first appellate authority has correctly enunciated the law as to the activity of job-work as to how it should be understood and the valuation of the said goods to be done. - Decided against revenue
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