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TMI Blog2010 (7) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the Commissioner (Appeals), Mumbai. By the impugned order, the appeal filed by the appellants against the order of the Deputy Commissioner, Belapur dated 25-7-2002 has been dismissed. The adjudicating authority by its order dated 25-7-2002 had confirmed the demand of duty to the tune of Rs. 3,47,223/- along with interest and further-penalty of Rs. 1.00 lakh. 4. The appellants are engaged in the manufacture of excisable goods falling under Chapter No. 73 and 84 of the Central Excise Tariff Act, 1985. They are also engaged in undertaking job-work of M/s. ONGC and during the period from 29-12-2000 to 2-5-2001 had cleared their goods so manufactured by paying the duty on assessable value arrived at by taking into account the materia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated in the reply that the appellants and ONGC are not related persons. Reply also disclosed references to the decision in the matter of Ujagar Prints Ltd. v. UOI, reported in 1987 (27) E.L.T. 567 (S.C.) and S.V. Steel & Vessel v. CCE, reported in 1998 (97) E.L.T. 448 (Tribunal). The contention regarding absence of material to impose penalty was also sought to be raised in the reply. 6. Perusal of the order passed by the adjudicating authority discloses that the demand was confirmed while holding that in terms of para 3 of the Board's Circular dated 19-2-2002 justifies adoption of principles of 115% of the cost of production as provided in Rule 8 of the said Rules in case of valuation of the goods manufactured by the appellants on job ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red on job-work basis. In other words goods manufactured on job-work basis after 1-7-2000 will continue to be valued in the same manner as they were being valued before 1-7-2000. In other words, after 1-7-2000, in respect of goods manufactured on job-work basis, valuation would be governed by Rule 11 of the new valuation Rules of 2000 read with Rule 6 read with the above two decisions of the Apex Court". The Circular thereafter elaborates the said observation by giving examples, and also specifies the pending cases on valuation of goods manufactured on job-work basis may be decided on the basis of the said instructions issued under the said Circular. 9. Plain reading of the order disclosed that though the authorities below being consc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applying of principles incorporated thereunder to a totally different situation by taking residuary provision cannot arise. The authority was justified in holding that there has to be a reasonable approach while applying the provisions of Rule 11 of the said Rules, but it erred in applying the principles incorporated under Rule 8, which has been specifically provided for the situation clearly described under the said provisions of law. Once the authority was conscious of the fact that those circumstances did not prevail in case of the appellants case, the question on applying the said principles could not arise. Besides, the Circular issued by the Board specifically refers to the Rule 6 of the said Rules. 11. In the circumstances, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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