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2018 (10) TMI 1413 - AT - Central ExciseValuation - includibility - For the purpose of manufacture of raw casting, they have got some patterns manufactured on job work basis from the job worker and paid for such pattern to the job worker. Subsequently, said patterns were sold to the buyer of raw casting - whether amortization cost of such patterns would be included in assessable value or not? - time limitation. Held that:- There is no dispute in the fact that the appellant have used the pattern which belong to the buyer of the goods, which means the appellant have manufactured final product by the use of patterns, supplied free of cost by the buyer to the appellant - As per Rule 6 of Central Excise valuation Rules, 2000, the consideration equal to the value of the goods supplied free of cost has to be included in the assessable value - the amortization cost of pattern was rightly included by the lower authority in the assessable value of final product. Time Limitation - validity of second SCN - Held that:- The appellant has shown income from sales of patterns in the balance sheet from which no one can make out that whether the sales of pattern is related to those patterns which were used in the manufacture of final product for buyer by using pattern belonging to the buyer. Therefore, there is a clear suppression of facts and mis-declaration on the part of the appellant - the second Show Cause Notice is for the period which is prior to the period of first Show Cause Notice. Since, there is a clear suppression of facts in both the show cause notice, 5 years period is available to the Revenue for issuing the sub-Show Cause Notice. Appeal dismissed - decided against appellant.
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