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2018 (4) TMI 1230 - AT - Central ExciseValuation - The raw materials are supplied by the principal manufacturer BIL to the appellants. After carrying out the manufacturing activity, the goods are cleared back to BIL who used such goods for further manufacture at their end - Rule 10 A (i) and (ii) of the Central Excise Valuation Rules - Held that: - Since this is not a case of the principal manufacturer immediately selling the goods manufactured by the appellants, Rule 10A of the Central Excise Valuation Rules will have no application in the facts of the present case. The landed cost of the raw materials at the appellant’s premises will include the cost of freight and insurance from the principal manufacturer to the appellant. But the appellant has claimed that the value taken by the principal manufacturer for payment of duty on the raw material includes the cost of such freight and insurance - the correct landed cost of the raw materials will need to be worked out with the support of the certificate of the authorized/qualified Cost Accountant. Revenue neutrality - Held that: - Any duty paid by the appellant will be available to the principal manufacturer as Cenvat credit, since the entire manufactured goods are returned to them - the entire exercise is Revenue neutral. Extended period of limitation - Held that: - the allegation of suppression made by the Revenue is not sustainable - demand of duty made by invoking the extended period set aside. Matter remanded to the original adjudicating authority for denovo adjudication after obtaining the cost of the raw materials duly supported by a CA Certificate - appeal allowed by way of remand.
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