TMI Blog2012 (5) TMI 271X X X X Extracts X X X X X X X X Extracts X X X X ..... will squarely apply, that is, to ascertain the assessable value on the cost of raw materials plus processing charges. - Decided in favor of assessee. - E/879/11-Mum - S/657/12/EB/C-II - Dated:- 6-3-2012 - Ashok Jindal, P R Chandrasekharan, JJ. For Appellant: Shri S K Babaladi, Consultant For Respondent :Shri S Dewalwar, Addl. Commr. (A.R) Per: P R Chandrasekharan: 1. This appeal and stay application are directed against the Order-in-Appeal no. SB(23)/23/MV/2011 dated 28.02.2011 passed by the Commissioner of Central Excise (Appeals), Mumbai. 2. The appellants, M/s Indian Extrusions, Goregaon, Mumbai are manufacturers of Plastic bottles/containers falling under Chapter 39 of the First Schedule to Central Excise Tariff Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred an appeal before the Commissioner (Appeals) who vide the impugned order rejected their appeal and, hence, the appellants are before us. 3. The ld. Counsel for the appellant submits that the provisions of Rule 10A and 8 of the Valuation Rules are not attracted in this case as has been held by the lower authorities, as they undertook the job work on a principal to principal basis and in respect of such transactions the assessable value has to be determined on the cost of raw-materials cost plus job charges collected as per the decision of the Hon'ble apex court in the case of Ujagar Prints vs. UOI reported in 1989(39)ELT 493(SC) and as clarified by Board's Circular no. 619/10/2002-CX dated 19.02.2002. 3.1 The Ld. Counsel also relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 5. We have considered the rival submissions. 5.1 After hearing the arguments, we are of the view that the appeal itself can be disposed of at this stage. Therefore, after granting stay, we take up the appeal for consideration. 5.2 Rule 10(a) of the Central Excise Rules reads as follows:- 10A. Where the excisable goods are produced or manufactured by a job-worker, on behalf of a person (hereinafter referred to as principal manufacturer), then,- (i) in a case where the goods are sold by the principal manufacturer for delivery at the time of removal of goods from the factory of job-worker, where the principal manufacturer and the buyer of the goods are not related and the price is the sole consideration for the sale, the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xcise Valuation Rules, 2000 also reads as follows:- 8. Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be [one hundred and ten per cent] of the cost of production or manufacture of such goods. 5.4 From a reading of the above Rules, it is seen that sub Rule (i) of the Rule 10A deals with a situation where the job worked goods are sold by the principal manufacturer. This situation does not arise in this case. The principal manufacturer does not sell the goods but consumes it in the packing of hair oil and other products. Sub Rule (ii) of Rule 10A also does not apply because that rule envisages sale of job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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