TMI Blog2015 (4) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... e inputs. The appellant is paying excise duty on the sale-price at which the goods is sold by their principal, M/s. BOC Ltd. As regards the valuation of job-work goods, it is settled by the hon'ble Supreme Court in the case of Ujagar Prints (1988 (11) TMI 106 - SUPREME COURT OF INDIA) that the valuation of job-work goods should be arrived at by taking the cost of raw material plus job-charges including profit of the job-worker. In the present case, the appellant is applying the sale value of the principal and it is not under dispute that the said value is lower than the value computed in terms of hon'ble apex Court judgment in Ujagar Prints (1988 (11) TMI 106 - SUPREME COURT OF INDIA). So long as this factual position is not in dispute, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ependent buyer (other than job worker) should be applied for the purpose of valuation of job-work goods also and accordingly differential duty was demanded. In adjudication, the learned Commissioner has confirmed the demands raised in the show cause notices. Hence the appellant is before us. 3. Shri S.P. Tavkar, learned Consultant for the appellant submits that the appellant has arrived at the assessable value of job-work goods which is the sale price of the same goods on which the goods were sold by their principal. It is his submission that in terms of hon'ble Supreme Court's judgment in the case of Ujagar Prints vs. Union of India 1988 (38) ELT 535 (SC), valuation of job-work goods should be arrived at on the basis of cost of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Act, 1944, the valuation has to be done by applying the normal sale-price. In the present case, since similar goods is sold at higher price to independent buyers that will construe as normal sale-price and the sale-price of other independent customers shall be the correct assessable value in respect of goods manufactured and cleared on job-work basis. In support of his submission he relied upon the following judgments: (i) Orissa Polyfibres Ltd. vs. Commissioner of Central Excise, Bhubhaneswar 2010 (258) ELT 125 (Tri-Del). (ii) Commissioner of Central Excise, Mumbai vs. Fiat India Pvt. Ltd. 2012 (283) ELT 161 (SC); 5. We have carefully considered the submissions made by both the sides. The appellant is manufacturing acetyle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , etc. They receive conversion charges for the job carried out by them. After conversion, the items are sold by them at prices fixed by SAIL. The Appellant job workers fell in the category of manufacturers liable to pay Central Excise duty. According to the law laid down by the Apex Court in the Ujagar Prints case, assessable value of processed goods should take in the value of the raw materials and the conversion cost and the profit of the job workers. It is not to include the profit of the merchant who finally sells the processed goods. In the present cases, the goods were sold on behalf of the SAIL, and the appellants paid duty at the time of removal of the goods on the sale price of SAIL. Thus, it is a case where the assessable value in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase same has not been disclosed by the parties before the Deptt. While arriving at assessable value? The High Court held- The Tribunal has clearly held that the assessable value has included costs and profit upto the sale of goods - not merely cost of materials and cost of conversion and profit of job workers. This finding is not shown to be perverse no substantial question of law arises for reference. Petition is dismissed. 8. We find that, in view of the above judgments as well as law settled by the hon'ble apex Court in Ujagar Prints case, as regards the valuation of job-work goods, the value adopted by the appellant is correct and legal. 9. We therefore, set aside the impugned order and allow the appeal of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
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