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VALUATION RULES

Central Excise - Started By: - SURESH BAGADIYA - Dated:- 18-1-2017 Last Replied Date:- 24-1-2017 - WE ARE ENGAGED IN GALVANIZATION OF M.S. ANGLES, M.S.FLATES AND PLATES. WE ARE GETTING M.S.ANGLES AND M.S.FLATES FREE OF COST FROM SUPPLIER ON DELIVERY CHALLAN AND WE CARRIED OUT HOT DIP GALVANIZATION. WE ARE MAKING INVOICE FOR THE SALES OF ZINC ONLY AND CHARGING EXCISE ON THE VALUE OF SALES OF ZINC AND ALSO AVAILING THE CREDIT OF ZINC PURCHASED BY US. MOST OF THE PARTIES ARE EXCISABLE AND REST ARE .....

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by way of undervaluation. (ii) Non-following proper procedure of job-work under Notification No.214/86-CE as amended, You have manufactured the excisable goods and removed the goods without proper payment of duty. Paying Central Excise duty on value of zinc only is not correct at all. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of Sri Kasturi Sir.Thanks. - Reply By Rajagopalan Ranganathan - The Reply = Sir, As per Note 4 of Chapter 73 of first schedule to Central Excise Tari .....

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M.S. Flats etc to the process of galvanization and you have to pay duty on the transaction value at which you clear the galvanized products to your supplier. Your supplier can take credit of duty paid by you. If your supplier the clears the galvanized products directly from your factory then rule 10 of Central Excise Rules, 2002 is applicable. Otherwise rule 10 is not applicable to you. This is my opinion. - Reply By PAWAN KUMAR - The Reply = dear sir,as per my view the duty is to be paid on val .....

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lowing Board's Circulars deeply. Duty is to be calculated on the transaction value but you will have to arrive at transaction value. There must be some basis for arriving at transaction value and that is mentioned in the undermentioned Board's circulars which is based on the Supreme Court judgement in the case of Ujagar Prints and Pawan Biscuits. Value of free goods has to be taken into account. Value of raw material (including free of cost)+Cost of manufacture+ Profit ( Your profit on t .....

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activity does not amount to manufacture (Except liquor). Here the activity (galvanization) amounts to manufacture. So CE duty is payable. - Reply By KASTURI SETHI - The Reply = Sh.Mukund Thakkar Ji, Sir, Pl. confirm Does hot-dip galvanization not amount to manufacture ? Thanks. - Reply By MUKUND THAKKAR - The Reply = Sh. Kasturi Sethiji, As per Note 4 of Chapter 73 of first schedule to Central Excise Tariff Act, 1985, in relation to products of Chapter 73, the process of galvanization shall amo .....

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f Supreme Court and accepted by the Board on the advice of Ministry of Law on this very issue. Both the circulars have neither amended nor withdrawn. Valuation (Central Excise) - Assessable value of goods subjected to value addition by processes not amounting to manufacture Circular No. 139/08/2000-CX. 4, dated 3-1-2001 Valuation (Central Excise) of the goods where subsequent process does not amount to manufacture but the process adds to the intrinsic value of the product to make up full commerc .....

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SE, CHENNAI - I 121, Mahatma Gandhi Road, Nungambakkam, Chennai 600 034. GENERAL CIRCULAR NO: 03/2001 DATED:24.1.2001 Sub: CE - Assessable value of goods subjected to value addition by processes not amounting to manufacture - Regarding. Copy of Board's letter F.No.139/08/2000-CX.4 dated 03.1.2001 along with the advice of the Ministry of Law are communicated herewith for information and appropriate action. Issued from file C.No.IV/16/301/2001-CX.POL.) Ministry of Law, Justice & CO. Affair .....

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units / job worker. 2. The referring department's note at pre-page explains the reference. Based on the reference it is observed that one of the positions that may arise is where the goods manufactured in the factory premises are subjected to further process in a shed within factory premises. The other position would be where the goods are manufactured in the factory premises and are subsequently transferred to another unit / job worker outside the factory premises for further process. In th .....

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n that the Siddharth Tubes (Supra) case has dealt with a situation where the goods are subjected to further process after manufacture though in a different shed but within the same premises. 3. As regards the other event where the goods have been cleared from the factory premises on payment of duty and have been subjected to further process in a different unit outside the premises of the assessee, such a situation cannot be taken into its fold by the Siddharth Tubes (supra) case. Such a situatio .....

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