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2016 (7) TMI 553 - AT - Central ExciseSuppression/mis-declaration - under valuation of the scraps - comparable goods by another supplier at a much higher price available - Held that:- We find that the show-cause notices issued by the lower authorities do not bring out any facts by which it could be said that the appellants were aware of under valuation of the scraps supplied by M/s.Greaves Ltd. to them. There is nothing on record to establish that the appellants were aware of the similar products being manufactured by another job worker M/s.Transmissions, Bombay and supply of the same was at a higher assessable value. The appellants have clearly declared in their invoices that they are converting the scraps supplied by M/s.Greaves into ingots and the invoices clearly shows the manner in which they arrived at the assessable value for the purpose of Central Excise duty. The Hon’ble Supreme Court in the case of Ujagar Prints (1989 (1) TMI 124 - SUPREME COURT OF INDIA) has held that the valuation of goods produced on job work basis would be done on the basis of cost of material supplied and the processing charges. The invoices issued by the appellants are in consonance with the said decision of the Hon’ble Supreme Court. In these circumstances, we find that there is no express or implies suppression/mis-declaration by the appellant. The argument of the learned AR that the appellants had purchased the material from M/s.Greaves Ltd. also does not help the revenue. So long as it is not established that the appellants were aware of the supply of comparable goods by another supplier at a much higher price. In the instant case there is no evidence that the appellants have recovered any price higher than the declared in the invoice. In these circumstances even if the arguments of the revenue that the appellants had purchased the material from M/s.Greaves Ltd. there is no suppression or mis-declaration forthcoming. Notice is barred by limitation. - Decided in favour of assessee.
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