TMI Blog2014 (1) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ies during their total life expectancy - in terms of the Board’s Circular No. 170/4/96-CX, dated 23-1-1996, the amortization cost of patterns which are used for making castings is to be determined on the basis of their expected life and capability of the patterns and the quantity of castings that can be manufactured from them and thus working the cost to be apportioned per unit - Following South East Electronic Components Pvt. Ltd. v. CCE, Meerut [2002 (12) TMI 517 - CEGAT, NEW DELHI] – order set aside – Decided in favour of Assessee. - E/2659/2008-EX(BR) - Final Order No. 56295/2013(PB) - Dated:- 2-4-2013 - Ms. Archana Wadhwa and Shri Rakesh Kumar, JJ. Shri B.L. Narsimhan, Advocate, for the Appellant. Shri Sanjay Jain, DR, for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance amount payable by the appellant to Maruti Udyog Ltd. in respect of moulds/dies was waived and written off. The Department, however, is of the view that instead of amortizing the cost of moulds/dies of bumpers over their normal life expectancy period, the amortization should be done over period during which these moulds/dies were actually used i.e. during period from 1999 to Sept, 2002 and on this basis amortization cost must be re-determined and included in the assessable value. On this basis the Department alleged that there is short payment of duty and accordingly a show cause notice was issued for demand of allegedly short paid duty of Rs. 13,86,474/- along with interest and also for imposition of penalty. The show cause not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ionate cost of patterns is to be included in the assessable value of the castings even in car where such patterns are being supplied by the buyers of the casting or are get prepared or manufactured by the job worker at the cost of buyer, that in the Circular it has been clearly stated that in cases where there is difficulty in apportioning the cost of patterns, apportionment can be made depending on the expected life and capability of the pattern and the quantity of castings that can be manufactured from it and thus working the cost to be apportioned per unit, that same view has been taken by the Tribunal in the case of South East Electronic Components Pvt. Ltd. v. CCE, Meerut reported in 2003 (160) E.L.T. 389 (Tri. Del.) and also in the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined on the basis of their expected life and capability of the patterns and the quantity of castings that can be manufactured from them and thus working the cost to be apportioned per unit. Same view has been taken by the Tribunal in the case of South East Electronic Components Pvt. Ltd. (Supra) and Flex Industries Ltd. (Supra). We also find that the Tribunal judgment in the case of Flex Industries Ltd. v. CCE, Meerut (Supra) has been uphold by a five member Bench of the Tribunal in the case of Mutual Industries Ltd. v. Collector of Central Excise, Mumbai, reported in 2000 (117) E.L.T. 578 (Tri.). In view of the settled legal position on this issue, there is absolutely no justification for the Department s stand in this case. 6. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
