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2017 (5) TMI 1019 - AT - Central ExciseValuation - raw material supplied free of cost by the buyers - includibility - Whether the raw material was supplied free of cost by the buyers is required to be added in the assessable value or not? - Held that: - As per value Valuation Rules, the value of the components/parts supplied free of cost to the appellants, was required to be added in the transaction value of the goods - the value of the materials, components, parts supplied free of cost by M/s.Jindal Stainless Steel Limited, Hissar (the buyer) to the appellants for use in the machinery manufactured on their behalf, was additional consideration flowing directly or indirectly form the buyer to the appellant and should have been added in the transaction value of the said machinery for the purpose of payment of central excise duty in terms of Rule 6 ibid of the valuation Rules and by not doing so, the appellants had certainly undervalued their goods, resulting into short payment of duty of ₹ 8,31,667/-. Therefore, the demand of duty of ₹ 8,31,667/- is legally sustainable and does not suffer from any legal infirmity - There was certainly suppression of facts on the part of the appellants and hence the extended period of limitation is rightly invokable - equal penalty u/s 11AC also confirmed - demand upheld. Whether the inputs which have been cleared as such without being any activity by the appellant are entitled for the benefit of exemption N/N. 58/03-CE dated 22.7.2003 or not? - Held that: - it is admitted fact that the appellant has cleared the inputs as such, and availed Cenvat credit thereon against domestic procurement certificate under N/N. 58/03-CE dated 22.7.2003. To avail the benefit of the said notification, the goods shall be produced or manufactured by the appellant which is not done in the instant case - the benefit of N/N. 58/03-CE dated 22.7.2003 is not available to the appellant. Appeal dismissed - decided against appellant.
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