Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (11) TMI 42 - CESTAT MUMBAI

2015 (11) TMI 42 - CESTAT MUMBAI - TMI - Valuation of goods - Inflation in value of export goods - Levy of excess credit - Held that:- Commissioner (Appeals) in her order has observed that in case of Ujagar Prints, the processed goods were returned to the suppliers of the raw materials. In those cases the buyers had not done any processes in job workers premises. In this case the goods were directly cleared from the job workers premises for export and no processes were done by exporters in job-w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

udicial) And Mr. Raju, Member (Technical) For the Petitioner : Shri.Sanjay Hasija, Supdt. (AR) & Shri.TC Nair, Advocate For the Respondent : Shri RB Pardesi, Advocate with Shri NS Patel, Advocate & Shri C.S.Biradar, Advocate ORDER Per: Raju 1. M/s.Swastik Dyeing & Bleaching Factory are processors of fabrics. Various exporters supply fabrics to M/s.Swastik Dyeing & Bleaching Factory, who processes the fabrics and hand it back to exporters. In this bunch of cases, all the exporters .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

g excess credit. The various heads under which the costs were sought to be included in the assessable value are listed in the show-cause notice. There costs were: a) For working out the Value of Gray Fabrics they have considered following elements: i) Value of Yarn ii) Wastage 5% iii) Sizing charges iv) Weaving charges b) In addition to the above to work out the cost of processed fabrics following elements have been considered: v) Transportation charges @ 10% covering loading/unloading, shrinkag .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rder of the Commissioner (Appeals), the department is in appeal before us. Four exporters were also filed cross objections. 3. The crux of the Revenues argument is that law laid down by the Honble Supreme Court in the case of Ujagar Prints and Pawan Biscuits has not been followed. The Commissioner (Appeals) in her order has observed that in case of Ujagar Prints, the processed goods were returned to the suppliers of the raw materials. In those cases the buyers had not done any processes in job .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the value of export products. In this regard the respondents relied on the decision of this Tribunal in the case of Steel Authority of India Ltd., Vs. CCE, Raipur 2006 (197) ELT 113 (Tri-Del) the Tribunal observed as under: 12. Now the issue remains about the assessable value of this scrap for levy of excise duty. Appellants have paid excise duty on the basis of the price received by them in response to their tender noticed submitted by M/s. AMR Associates. However, it is observed that the appel .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r their canteen and labour etc. Therefore, all these facilities which were provided free of charge form value of the iron scrap which is being cleared from the factory of the appellants. All the charges incurred inside the factory for bringing scrap up to the factory gate are required to be included for assessment purpose in the assessable value of the goods whether incurred by the appellants or by M/s. AMR Associates on behalf of the appellants. Therefore, the tender price at which the goods we .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Court as reported in 2008 (221) ELT 831 (SC). Furthermore, in the case of CCE, Pune-II Vs. Jubilee Fabrics Ltd. 2007 (220) ELT 79 (Tri-Mumbai) and identical dispute has been decided by this Tribunal. In the said order, this Tribunal has observed as under: 3. The ld. Commissioner (Appeals) while allowing the appeal of the respondents had come to the following findings :- The appellants have now relied upon the Tribunal s latest decision in the case of Steel Authority of India Ltd. (SAIL) v. CCE, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ation of weigh bridge; that they had allowed them to maintain the approach roads and converts from operation at their own cost; that no ground rent was charged by M/s. SAIL from M/s. AMR for making use of the company land, for their canteen and labor etc; that therefore, all these facilities which were provided free of charge from value of the iron scrap which was being cleared from the factory of M/s. SAIL; that all the charges incurred inside the factory for bringing scrap upto the factory gat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t some of the processes were done by the buyer at his own expense. In such a situation, the assessable value of the goods while leaving the factory gate will naturally include the cost of all the processes undertaken for making the goods marketable, even if some cost has been incurred by the buyer. The appellants have also referred to CBEC s Circular 139/8/2000-CX.4 dated 3-1-2001, wherein the Board has clarified that cost on account of process not amounting to manufacture, if undertaken inside .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

3% and manufacturing profit of the Exporters is includible in the assessable value. It is also seen the appellants were paying duty during the material period on the exporters selling price of the processed fabrics, which included the cost of all processes undertaken by the exporter as well as the manufacturing profit of the raw material supplier i.e. M/s. Banbury Exports & M/s. SDM International and the same was never objected to by the department. The deemed Cenvat credit availed by the ap .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version