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2015 (4) TMI 244 - MADRAS HIGH COURT

2015 (4) TMI 244 - MADRAS HIGH COURT - 2015 (321) E.L.T. 99 (Mad.) - Valuation - Power of Tribunal - whether the Tribunal could pass an order based on the statement made by the learned counsel for the respondent/assessee that the actual amortised cost has been included in the value of the components during the relevant period, which is not supported by any material - Held that:- Tribunal has merely recorded the statement made by the learned counsel for the assessee and dismissed the appeal filed .....

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is appeal deserves to be remanded back to the Tribunal for fresh consideration - Matter remanded back - Decided in favour of Revenue. - Civil Miscellaneous Appeal No. 1633 of 2010 - Dated:- 12-3-2015 - R. Sudhakar And S. Vimala,JJ. For the Appellant : Mr. E. Vijay Anand Standing Counsel For the Respondents : No appearance JUDGMENT (Judgment of the Court was delivered by R. Sudhakar,J.) This Civil Miscellaneous Appeal filed under Section 35G of the Central Excise Act, 1944 challenging the order d .....

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not be considered for the valuation of the impugned goods for demanding duty?" 2. The brief facts of the case are as follows: The first respondent/assessee is engaged in the business of manufacturing excisable goods falling under Chapter 79, 84, 85, 90, 91 and 96 of the CETA, 1985. On verification of documents maintained by the assessee during the period from 1994-95 to 1997-98, more particularly debit notes raised by the assessee, it was found that amounts realised through debit notes were .....

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ders issued by various customers from time to time. Over and above such purchase orders, M/s. SDL have also entered into agreements with various customers for compensation against design, drawing and development charges of dies and tools used for goods manufactured and supplied by them. Certain such agreements also relates to design, drawing and development charges of dies and tools required for manufacture and supply of goods contracted between them. A cross verification of the invoices raised .....

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a product. The said activities are related directly to the manufacture and supply of goods. Hence it appears that the money value of such activities should form part and parcel of the value of the goods manufactured and supplied. Similarly, the financial compensation for design, drawing, development of tools and dies extended by the customer for manufacture and supply of goods, appears to have a direct influence on the contracted price entered into between M/s.SDL and their customers. In view o .....

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are required to be included in the price of the goods for the purpose of determining assessable value. The goods under reference falling under various chapters during the relevant period are liable to duty at the rate of 15% adv. Hence the differential duty payable on the additional amount realised by M/s.SDL works to be BED ₹ 9,56,666.40 Consequently, the show cause notice proposed to demand duty as follows: "Now. therefore, M/s.SDL are hereby called upon to show cause to the Additi .....

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terest on delayed payment of duty should not be demanded under section 11AB of Central Excise Act, 1944. 3. Thereafter, the case was adjudicated by the jurisdictional Assistant Commissioner, who held that the Chartered Engineer's certificate filed by the first respondent/assessee could not be accepted in view of certain discrepancy. He further held that since the assessee could not establish the pro-rata amortization cost per piece through a legally sustainable manner, the entire cost of mou .....

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preferred an appeal before the Commissioner (Appeals), who came to hold that the dispute between the Department and the assessee centers around the Chartered Engineer's certificate and even if the Chartered Engineer's certificate has to be rejected, there should be other information available on record. He further held that if there were some discrepancy in the Chartered Engineer's certificate, the same could not be rejected in its entirety. He placed reliance on the decision of the .....

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tion cost on the value of components. When the proceedings is for demanding duty on components, the order demands duty on the value of moulds. This totally unacceptable. Therefore, the impugned order is set-aside. However, the department may again proceed against the appellant, if it is found that they have not correctly amortized the value of moulds and included such amortized cost on the components cleared during the disputed period." 6. Not satisfied with the order of the Commissioner (A .....

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