Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Vineet Packaging Industries Versus C.C.E., Delhi-IV

2016 (9) TMI 577 - CESTAT CHANDIGARH

Valuation - amortization of the coast of dies/moulds on the value of the goods manufactured - dies/moulds cleared on payment of duty to various parties - adoption of Rule 6 - Held that:- it is found that in the name of amortization what has been done, is simply to take the value of Dies/Moulds and charge excise duty on such value. No effort has been made by the Revenue to arrive at the amortization cost of Dies/Moulds on scientific basis. We find it difficult to approve such amortization on a su .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e cost of such Dies/Moulds also stands returned. In the latter case, the dies/Moulds would effectively become free supply in the hands of the appellant. - The value of the goods manufactured by the appellant should include the appropriate fraction of the cost of Dies/Moulds as it have been given in the explanation of Rule 6, but, we are not convinced that the amortization has been properly done on a scientific basis. Therefore, the matter needs to be remanded to the Original Adjudicating Aut .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

V, Faridabad. 2. The dispute is regarding the duty demanded in the impugned order by amortization of the coast of dies/moulds on the value of the goods manufactured by the appellant. The appellant, during the years 2007-08 to 2010-11, manufactured dies/moulds. These were cleared on payment of duty to various parties. These parties subsequently returned the Dies/Moulds to the appellant under invoice on which the appellant availed Cenvat Credit. The appellant used these Dies/moulds for the manufac .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s demanded with interest and imposition of penalty. 3. The appellant has challenged the impugned order mainly on the following grounds: (i) Under Rule 6 of Central Excise Valuation Rules, 2000, the value of Dies/Moulds supplied free of cost needs to be included in the assessable value of finished goods. However, in the present case excise duty has already been paid on the Dies/Moulds. Hence, there is no need to adopt Rule 6. (ii) There was no loss of revenue to the government because there was a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

cisable goods are sold in the circumstances specified in clause (a) of sub section (1) of section 4 of the Act except the circumstance where the price is not the sole consideration for sale, the value of such goods shall be deemed to the aggregate of such transaction value and the amount of money value of an additional consideration flowing directly or indirectly from the buyer to the assessee. Explanation 1 of Rule 6 of Central Excise Valuation Rules 2000 reads as follows: For removal of doubts .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to sale of the goods being valued and aggregated accordingly, namely;- (i)- (ii) Value of tools, dies/moulds, drawing, blue prints, technical maps and charts and similar items used in the production of such goods. (iii) - 6. This rule is attracted when Dies/moulds are supplied by the buyer free of charge or reduced cost for use in connection with the production and sale of such goods. In cases, where the Dies/Moulds are supplied free by the customers, the amortization is to be done and a fracti .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

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

Go to Mobile Version