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2017 (10) TMI 333 - AT - Central ExciseValuation - job-work - The department was of the view that the appellants have to apply the valuation laid down in Ujjagar Prints case [1988 (11) TMI 106 - SUPREME COURT OF INDIA], and therefore cannot deduct the value of scrap from the cost of raw materials - Held that: - As per the proposition laid down in Ujagar Prints case, the appellants have to pay duty on the raw materials plus cost of conversion charges plus margin of profit. It does not say that the appellant can deduct the cost of raw materials when the scrap was returned to the principal - demand upheld. Penalty - Held that: - In the present situation, wherein there has been interpretation of the proposition laid down in the decision rendered in Ujagar Prints by the appellant, being merely a dispute of interpretation and the appellant having reduced the value of scrap returned only, the penalty imposed is unwarranted - penalty set aside. Decided partly in favor of appellant.
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