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TMI Blog1996 (2) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ll the appeals manufacture Multi Layer Polythene Films on job work basis using LDPE Granules supplied by the customers and after manufacture return the final product to the customers. They also have independent manufacturing activity on their own for which they buy raw materials and after manufacture, they sell final products. We are concerned in these appeals with the duty liability of the appellants in regard to the job work done. 3. In the price list submitted by the appellants in regard to the job work activity, they showed the cost of raw materials (without including the excise duty paid on the raw materials) and the job charges. It has to be noticed that in all the appeals except Appeal E/927/95-A the appellants were availing Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntral Excise, Pune - 1996 (81) E.L.T. 676 (Tribunal) held that in determining the assessable value under Rule 7 read with Rule 6(b)(ii) of the Rules and Section 4(1)(b) of the Act, the excise duty paid on the raw material and in respect of which credit has been taken, should not be part of the assessable value. The principle laid down in the above decision would apply to the facts of these cases. Shri A.K. Singhal, the learned JDR submitted that in Appeal No. E/927/95, he has a doubt if the raw materials were exempt from duty for a part of the period in question. This, of course is, a matter for verification by the Department. 5. Shri Singhal submitted that the question of adding or not adding the excise duty on raw materials in deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw materials in the assessable value of the final product. Since appellants succeed on that aspect, the penalty imposed in those appeals cannot stand. 7. In appeal E/5353/93-A, the appellant had failed to declare the cost of transportation of the raw material and the cost of two chemical consumables in the assessable value of the final product. This was not shown in the price list also. It is difficult to accept that this was an accidental or clerical omission. The omission must have been deliberate. Therefore, the appellant in this appeal has been guilty of contumacious conduct in this regard. Penalty of Rs. 25,000/- has been imposed also taking into consideration the enhancement of duty payable by the addition in the assessable val ..... X X X X Extracts X X X X X X X X Extracts X X X X
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