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2017 (7) TMI 889 - AT - Central ExciseValuation - die modification charges - case of Revenue is that the die modification charges has also to be amortised in the value of the motor vehicle parts manufactured by the appellants in same manner as the cost of dies is amortised - Held that: - the amortisation cost of die/tools/ moulds has to be included in the assessable value of the excisable goods manufactured out of such tools/die/mould supplied free of cost by the customer even though it does not make any difference whether the appellants have carried out the modification. Even if the modification is carried out by someone else, the value of modification will enhance the value of the tools/dies. When such modified tools/dies used by the manufacturer the said enhanced value shall be considered for taking the cost of the tools/die for purpose of amortisation. Therefore whether it is the original cost of the die or enhanced cost due to addition of modification charges it is one and the same and the cost of the die should be taken as the original cost of the die plus modification charges. That is the total cost of the die which is to be amortised. Accordingly, the amortisation cost of modification charges of the dies has to be included in the assessable value of the goods manufactured with the help of such die/tools. Hence the amortisation of modification charges of die is required to be included in the assessable value. Extended period of limitation - penalty - Held that: - there was no means for ascertaining that the appellants have collected die modification charges in respect of those dies/tools which are used for manufacture of excisable goods of the appellants. In this fact there is a clear suppression of fact on the part of the appellants. Therefore the extended period was legally and correctly invoked by the adjudicating authority. For the same reason the penalty imposed under Section 11AC is also sustainable. Appeal dismissed - decided against appelalnt.
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