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2016 (11) TMI 506 - CESTAT MUMBAIDemand - valuation - bearing rings - job-work - additional consideration received on account of conversion charges in the form of scrap value paid to job workers in addition to job charges not included - whether appellant has undervalued the bearing rings manufactured by them and cleared to SKF Ltd. or otherwise? - Held that: - we perused the purchase order placed by SKF on TISCO and the invoices raised by appellant and find that appellant has discharged the applicable central excise duty on the value on which TISCO sells the goods to SKF. If it is so, then in our view, appellant cannot be saddled with additional duty liability - reliance placed on the decision of the case Surindra Steel Rolling Mills vs. CCE [2003 (1) TMI 176 - CEGAT, NEW DELHI] where it was held that it is a case where the assessable value included all the costs and profit up to the sale of the goods i.e. the profit of the merchant (SAIL) and not merely the cost of the materials and the cost of conversion by the appellant job workers and their profit. The assessable value adopted by the appellants could only be in excess of assessable value liable to be adopted by the appellants. There could be no arguing that, by adopting the sale price of SAIL, the appellants under valued the goods and paid less duty than was due. Demand not sustainable - appeal allowed - decided in favor of appellant.
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