Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (12) TMI 86 - AT - Central ExciseValuation - includibility - whether the cost of free supply goods by the customer should be included in the assessable value of appellant's manufactured goods? - Held that: - Rule 6 states that any goods supplied directly or indirectly by the buyer free of charge for use in connection with the production and sale of such goods to the extent that such value has not been included in the price actually paid or payable shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the goods being value. As per this Rule, from 01.07.2000, the value of free supplied goods by the buyer which is used in connection with the production of the goods, to be sold to the buyer is includable in the assessable value - In the present case, the cenvat credit was availed by the buyer of the goods and not by the appellant. Therefore the landed cost of free supplied goods should be taken for inclusion in the assessable value, accordingly no deduction on account of excise duty of free supplied goods is permitted. No profit was added with reference to the addition of cost of free supplied goods. Therefore there is no question that excise duty is included in the cost of free supplied goods, accordingly cum duty price benefit cannot be extended in the peculiar facts of the present case. Revenue neutrality - Held that: - the cenvat credit was not taken by the appellant, rather it was not available to them whereas the cenvat credit was admittedly taken by the buyer. Secondly, the appellant, due to crossing the exemption limit of ₹ 1 crore are required to pay duty on other goods also. Therefore, the revenue neutrality does not apply in the facts of the present case. Time limitation - Held that: - the appellant have not disclosed the fact of receipt of free supplied goods and use thereof in the production to the department at any point of time. Therefore, there is a clear suppression of fact on the part of the appellant - extended period rightly invoked. Appeal dismissed - decided against appellant.
|