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2009 (5) TMI 486 - AT - Central ExciseValuation- The relevant facts that arise for consideration are, that the respondent during the period October 2001 to February 2002 manufacture “Robin Blue” retail packs on job work basis and it was alleged that there was under valuation as they had not included a margin of 15% on the cost of production of the main raw materials viz Ultramarine Blue in bulk form. The said ultramarine blue in bulk form is cleared by respondent’s Principal M/s. Reckitt Benckiser India Ltd., on payment of appropriate duty on the cost of production plus 15% margin as provided under Rule 8 of the Central Excise Valuation Rules, 2000. After receipt of the said ultramarine blue in bulk form, respondent repacked the same into retail pack and was discharging duty on clearance of such retail packs by arriving at the value by the formula as is settled by Hon’ble Supreme Court in the case of Ujagar Prints i.e. considering the cost of production in the hand of main raw material supplier i.e. M/s. Reckitt Benckiser India Ltd. and not adding the 15% margin to the said cost of production. Show cause notice was issued demanding differential duty on this 15% margin. Adjudicating Authority after considering the submissions made before dropped the proceedings initiated by the show cause notice. Held that- the impugned order is set aside and Revenue’s appeal is allowed by way of remand to the Adjudicating Authority to reconsider the issue afresh on all the points, which may be raised by the respondent.
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