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2017 (2) TMI 313 - AT - Central ExciseValuation - demand of duty on value of tools - Department is of the view that the appellant has neither paid the duty on the value of the tools nor amortised the cost of the tools in the value of the motor vehicle parts manufactured and supplied to Eicher Motors - Held that: - It is settled position that excise duty is payable only on the clearance of the goods from the factory of the manufacturer. However, it is also a settled law that the amortisation cost has to be apportioned in the value of the component manufactured when the tools is belonging to the principal manufacturer. The tools were used for manufacture of components under job work in terms of Rule 4(5)(a). In such case no excise duty is payable. Therefore, no question of inclusion of amortisation cost of the tools arise. However, the adjudicating authority has not given any finding on the issue of job work under Rule 4(5)(a). Therefore, the matter needs to be remanded to the original authority - appeal allowed by way of remand.
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