TMI Blog2008 (2) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned order demanded duty on clearances of credit availed capital goods and processed inputs. 2. Appellants manufacture shock absorbers and parts falling under CSH 8708.00 and 8714.00. During 1996-97 to 2000-01, HL had cleared inputs got processed by job workers to its sister units and subsidiary RAPSHL paid duty on these removals considering aggregate of raw material cost, transportation and labour charges of the job worker as the value. A show cause notice was issued initially on 27-7-01 and an addendum issued on 2-1-02. In the addendum demand was enhanced revising the cost of processed inputs including more elements towards cost of production. The impugned order confirmed a demand of Rs. 65,47,756/- on removals of processed inputs u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on these clearances and Internal Audit had raised similar observations later. Assessee had been enquired by the authorities in this regard in 1998. Appellants have placed on record correspondence in this regard. Moreover, assessee appears to have entertained a genuine belief that Ujagar Prints formula of valuation applied in the situation. Goods removed were job worked inputs. HL did not do any manufacturing activity. Therefore the valuation applicable to manufacture by job worker applied. Even in 2001, the department was uncertain about the method of valuation to be adopted and an addendum to the demand notice was issued in 2002. Therefore, the argument of the assessee of bona fide cannot be ignored. Accordingly demand for the period and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee so arranges that the excisable goods are not sold by an assessee except to or through a person who is related in the manner specified in either of sub-clauses (ii), (iii) or (iv) of clause (b) of sub-section (3) of section 4 of the Act, the value of the goods shall be the normal transaction value at which these are sold by the related person at the time of removal, to buyers (not being related person); or where such goods are not sold to such buyers, to buyers (being related person), who sells such goods in retail : Provided that in a case where the related person does not sell the goods but uses or consumes such goods in the production or manufacture of articles, the value shall be determined in the manner specified in rule 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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