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2016 (9) TMI 577 - AT - Central ExciseValuation - amortization of the coast of dies/moulds on the value of the goods manufactured - dies/moulds cleared on payment of duty to various parties - adoption of Rule 6 - Held that:- it is found that in the name of amortization what has been done, is simply to take the value of Dies/Moulds and charge excise duty on such value. No effort has been made by the Revenue to arrive at the amortization cost of Dies/Moulds on scientific basis. We find it difficult to approve such amortization on a summary basis simply by referring Rule 6. It is found that the Dies/Moulds through cleared on payment of duty to their customers were received in their factory under invoices. It is also on record that the appellant has availed the Cenvat Credit of the duty paid on such Dies/Moulds upon their return to appellant’s factory for use in the manufacture of goods for the customers. It is not clear whether through such invoices only the Cenvat duty paid on the Dies/Moulds have been returned or whether the cost of such Dies/Moulds also stands returned. In the latter case, the dies/Moulds would effectively become free supply in the hands of the appellant. The value of the goods manufactured by the appellant should include the appropriate fraction of the cost of Dies/Moulds as it have been given in the explanation of Rule 6, but, we are not convinced that the amortization has been properly done on a scientific basis. Therefore, the matter needs to be remanded to the Original Adjudicating Authority for re-examination of the matter. - Appeal allowed by way of remand
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