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2019 (5) TMI 576 - AT - Central ExciseValuation - Cylinder - inclusion of amortization cost in the assessable value - HELD THAT:- As per Rule 6 of Central Excise Valuation Rules, since the cylinder was owned by the buyer of the finished goods which were used by the appellant, its amortization cost is to be added in the value of the goods i.e. plastic pouches. As per the facts of the case, Revenue has demanded the duty on the entire value of the cylinder, which is not correct and legal, and only amortised cost of each product is to be added and on that basis first, amortized cost according to the capacity of the cylinder has to be worked out and the said amortised cost can only be added in respect of number of products manufactured and cleared by the appellant. Therefore, the method adopted i.e. demand on the entire value of cylinder is incorrect. For the purpose of amortization cost, Chartered Engineer can certify the capacity of the cylinder and corresponding amortization cost per piece of product. Since the said exercise was not carried out and the demand was confirmed on the basis of value of cylinder, it is not correct and legal. Matter remanded to Adjudicating Authority to decide the matter afresh after ascertaining the correct amortized cost of the cylinder - appeal allowed by way of remand.
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