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2018 (12) TMI 931 - AT - Central ExciseValuation - includibility of cost of ‘prototype’ in assessable value - the value assigned to the scrap arising from the conversion process that was retained by the appellant and the percentage of ‘scrap’ adopted - Held that:- It is not clear whether the prototype is subjected to testing within the factory of the appellant or elsewhere. Similarly, it is not ascertainable if the prototype is assembled in the premises of the appellant or at another location after clearance of the disassembled parts. In the absence of any such evidence, it is impossible to crystallise the leviability of duty, if at all. It was in almost identical circumstance that the Tribunal held in Commissioner of Central Excise, Mumbai – II v. Jyoti Structures Ltd [2004 (5) TMI 358 - CESTAT, NEW DELHI] that ‘destruction testing’ erases the prototype out of existence and, thereby, of dutiability. The various elements of the ascertained assessable value suffer from infirmities - To determine any deficit in the value adopted for assessment in comparison with the price declared as per the contract, the exercise requires to be carried out afresh in the light of our observations on these elements - matter remanded back to the original authority to re-determine the acceptability of the declared price for assessment and the duty liability, if any, arising from unaccounted value of these elements - appeal allowed by way of remand.
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