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2022 (3) TMI 273 - AT - Central ExciseValuation - Job Work - applicability of valuation provisions contained in the newly inserted sub-clause (iii) of Rule 10A read with Rule 8 ibid - consequent upon insertion of Rule 10A in the Central Excise Valuation Rules,2000 (w.e.f. 01.04.2007) - liability to pay Central Excise Duty on 110% of the cost of production of the Laminations - HELD THAT:- It is not the case of Revenue that the Laminations manufactured by the appellants were sold by the principal manufacturer in as it is condition to the buyers. Since the said goods were used by another job worker and such job-worked goods were further used by the principal manufacturer for ultimate manufacture of the final product by themselves, which were subsequently sold in the open market, the valuation of the goods manufactured by the appellants cannot be done as per the provisions of Rule 10A(iii) ibid read with Rule 8 ibid. Rather, in our considered opinion, the valuation in the circumstances of the present case should appropriately be done as per the formula laid down by the Hon’ble Supreme Court in the case of Ujagar Prints [1989 (1) TMI 124 - SUPREME COURT]. - This view of the Bench is in consonance with the co-ordinate Bench decision in the case of Advance Surfactants India Ltd. [2011 (3) TMI 1380 - CESTAT, BANGALORE]. In the case in hand, inasmuch as the job-worked goods were sent by the appellants to another job worker for further manufacture and such manufactured goods thereafter were used by the principal-manufacturer for manufacture of a entirely different excisable product. In other words, the ‘Lamination’ manufactured by the appellants were not used by the principal-manufacturer for manufacture of ‘Compressors’. There are no merits in the impugned order passed by the learned Commissioner (Appeals) in upholding confirmation of the adjudged demands on the appellant - the appeal is allowed in favour of the appellant.
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