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2009 (3) TMI 444 - AT - Central ExciseValuation- Limitation-- the appellants receive raw materials from WIL, then they undertake the conversion of billets, slabs, blooms of iron/MS into rim bars/sections falling under sub-heading 7216.10. The rim bars/sections so manufactured are cleared by the appellants on payment of appropriate duty. The short point involved is whether the value of the scrap obtained by the appellants while doing the job work is to be included in the assessable value of the goods manufactured by them. This is the main issue. The revenue has proceeded against the appellants on the ground that they had not included the said value and therefore, duty as per the Show Cause Notice has been confirmed for the period from 31-1-2002 to 31-8-2005.There is also a question of limitation has been involved. In the light of the various decisions held that- if the intermediary product are not liable to duty at the hand of the job worker, then the question of adding the value of scrap does not arise at all. Thus the value of scrap need not be included in the assessable value of the products manufactured by the appellant. On the question of limitation, held that- whatever duty is paid by the appellant is taken as credit by M/s. WIL. Definitely, there is revenue neutrality and this has a bearing on the question of invoking the longer period, because whatever duty is borne by the appellant will in turn be passed as cenvat credit to M/s. WIL. In these circumstances also, the longer period cannot be invoked thus allow the appeal with consequential relief.
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