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MAHINDRA & MAHINDRA LTD. Versus COMMR. OF C. EX. & CUS., NASHIK

2012 (8) TMI 921 - CESTAT MUMBAI

Valuation - includibility - bullet-proofing charges - job-work - Revenue is demanding duty after adding the bullet-proofing charges to the assessable value of the Jeep on the ground that the order received for Bullet Proof Jeep and the appellants supplied the same - E/2649/2004 - Final Order No. A/880/2012-WZB/C-II(EB) - Dated:- 30-8-2012 - Shri S.S. Kang, Vice-President and Sahab Singh, Member (T) Shri Bharat Raichandani, Advocate, for the Appellant. Shri S. Dewalwar, Additional Commissioner (A .....

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rom various Police departments of different States for supply of Bullet Proof Jeep. The appellants cleared base vehicle on payment of appropriate duty to the job-worker where the process of bullet-proofing was undertaken. From there the Bullet Proof Jeep was cleared to the Police department. The Revenue is demanding duty after adding the bullet-proofing charges to the assessable value of the Jeep on the ground that the order received for Bullet Proof Jeep and the appellants supplied the same. Th .....

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d the same was dismissed. 3. The contention is that as on the same issue in the appellants own case, the decision is in their favour, therefore, the present impugned order is not sustainable. 4. The Revenue heavily relied upon the Hon ble Supreme Court s decision in the case of Siddhartha Tubes Ltd. v. Commissioner of Central Excise, Indore - 2006 (193) E.L.T. 6 (S.C.) to submit that as there is a value addition to the base vehicle, therefore, the appellants are liable to pay the duty .....

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demand is rightly made. 5. We find that the Tribunal in the appellants own case where the Bullet Proof Jeep was supplied to J&K Police and the process of bullet proofing was undertaken by the job-worker, the Tribunal after relying upon the Board s Circular No. 139/08/2000-CX, dated 4-1-2001 whereby the Revenue obtained the opinion of the Law Ministry in respect of the ratio of the decision of Hon ble Supreme Court in the case of Siddharth Tubes Ltd. (supra) and it has been clarified tha .....

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is what is the transaction value in this case. Department s contention is that since MML is a single entity and order is placed on one of their divisions, the value to be adopted is for the vehicle supplied to the customer and not the value of the base vehicle removed from the respondent. It would be appropriate to consider the relevant legal provisions and consider this submission. 5. Factory as defined under Section 2(e) of the Act means :- Factory means any premises, including the preci .....

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.E. (N.T.), dated 26-6-2001 as amended has prescribed conditions. According to the notification, if a registered person has more than one premises, he shall obtain separate registration certificate for each premises. The fact that each premises should have a registration emerges from the provisions of Sec. 4 of the Act which requires determination of value at the place of removal. Naturally, place of removal has to be one place. What follows from the provisions relating to registration is that e .....

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the country, each making plastic granules, plastic films, plastic bags and printed bags. For the finished product of one division, the finished product of another division is the raw material. If a purchase order is placed on the division for printed plastic bag, question arises whether the division clearing the granule can be asked to pay duty on the value of printed bags or any of other two divisions can be asked to do so. If the product undergoes a process which does not amount to manufacture .....

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elow for better appreciation :- 15. Now the question as to under these types of transaction and circumstances, whether the value of processing carried out by the independent contractor can be included in the assessable value of the goods cleared, without carrying out such process from the appellants premises. In this regard the appellants have referred to the C.B.E. & C. Circular No. 139/08/2000-CX, dated 4-1-2001 on the subject, in which while dealing with similar circumstances, the Bo .....

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them and collects job charges and return or cleared the goods on behalf of the supplier of the goods. The Law Ministry has advised that the judgment of the Siddharth Tubes Ltd. does not enable the department to charge duty on value addition outside the factory of clearance on account of certain processes not amounting to manufacture of manufactured goods in a separate/other unit of the same group or by any independent job worker. The advise of the Ministry of Law has been accepted by the Board. .....

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carried out by the independent job worker viz. M/s. Metaltech Motor Bodies, in the premises of the job worker. (6). Almost an identical issue relating to the place of removal after the amendment came up before the two member Bench headed by the President of the Tribunal, in Castrol India Ltd. v. C.C.E, New Delhi - 2000 (118) E.L.T. 35 (Tribunal) = 2000 (41) RLT 652 (CEGAT). In that case blended lubricating oil was removed from the place of manufacture in bulk in tankers to the depots/packin .....

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