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2019 (5) TMI 1169 - AT - Central ExciseValuation - inclusion of value of scrap in assessable value - Job-work - Demand of Differential Duty - Rule 4(5)(a) of the Cenvat Credit Rules, 2004 - HELD THAT:- In terms of Rule 4(5)(a) of the Cenvat Credit Rules, 2004, the manufacturer of final product is permitted to take credit on inputs received in its factory and send the same to the job worker for the manufacture of intermediate product, for use in the manufacture of the ultimate final product. In such a situation, the job worker who manufactures the intermediate product is not liable to pay any duty - Thus, the principal manufacturer M/s Tata Motors could have followed the procedure prescribed under Rule 4(5)(a) ibid and the appellant could have manufactured the finished product out of the inputs supplied on job work basis and return the same without payment of duty. In such eventuality, the differential duty cannot be demanded in terms of the procedures prescribed under the Cenvat statute. The value of scrap need not be included in assessable value of the product and cleared by the job worker. Valuation - inclusion of the amortized value of moulds and dies in the job charges - HELD THAT:- The appellant had accepted the duty liability and not contested the duty demand confirmed against it - thus the duty demand on such ground has been rightly confirmed by the authorities below. Appeal allowed in part.
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