TMI Blog2017 (3) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... lue of scrap retained by the appellant is not includible in the assessable value of the said goods. Otherwise it will amount to double taxation - appeal allowed - decided in favor of appellant. - E/478/2008 - A/60385/2017-EX[DB] - Dated:- 8-3-2017 - Mr. Ashok Jindal, Member (Judicial) And Mr. Devender Singh, Member (Technical) Shri. Sudeep Singh, Advocate- for the appellant Shri. H. Singh, AR - for the respondent ORDER Per Ashok Jindal The appellant is in appeal against the impugned order. 2. The facts of the case are that the appellant is engaged in manufacture of Forging Tractor parts. They filed refund claim on account of excess duty paid on good cleared on job work basis. The appellants were manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et of facts, it was alleged that value of scrap retained by the appellant, not included by them in the assessable value of said goods manufactured on job work basis was actually includible in the assessable value of the said goods under the provisions of Section 4 of the Central Excise Act, 1944 read with Rule 6 of Central Excise Valuation (Determination of price of Excisable Goods) Rules, 2000. Therefore, the show cause notice was issued to proposing to demand duty on scrap value retained by the appellant. The matter was adjudicated, the demand purposed in the show cause notice was confirmed along with interest and penalty was also imposed on the appellant. Aggrieved from the said order, the appellant is before us. 3. The ld. Counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. (Supra) wherein it was held that if the appellant paid duty on clearances of the scrap and the duty is demanded against on the scrap retained by the appellant shall amount to double duty paid by the appellant. 8. The same view was taken by this Tribunal in the case of Ad-Manum packaging Ltd. (Supra) wherein the facts of the case are as under: 3. The issue involved in the case is regarding the demand of Central Excise Duty on the value of scrap retained by the appellant, who is a job worker. The appellant herein is manufacturing HDPE bags on job work basis for one of their customers and discharging the duty liability based upon the cost of raw materials plus job work charges and the profit of margin. As per the understanding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was no need for including the value of the scrap in the assessable value again. It was stated that this would amount to addition of the value of the scrap twice. A decision of this Bench in the case of Consolidated Engg. (supra) has also been relied on. 8. After considering the decision of the Tribunal in the case of Lawkim Ltd. Ors. [1987 (31) E.L.T. 700 (Tribunal)] and various other decisions, the Tribunal in Paragraph 6.2 reproduced the ratio as in the case of International Auto Ltd. [2005 (183) E.L.T. 239 (S.C.)] and held that adding the value of scrap to the value of the job worked goods is incorrect. This decision of the Tribunal was challenged by the Revenue in civil appeal before the Apex Court and the Apex Court on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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