TMI Blog2018 (1) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant stands correctly included for determining the duty amount. Time limitation - Held that: - the claim of bona fide belief cannot be sustained - extended period rightly invoked. Appeal dismissed - decided against appellant. - Appeal No. E/3247/06 - A/85024/2018 - Dated:- 11-1-2018 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri T.C. Nair, Advocate for Appellant Shri Deepak S. Chauvan, Supdt. (A.R) for Respondent ORDER Per : Raju This appeal has been filed by M/s. Radiant Engineers against confirmation of demand of duty of items manufactured by them on job work basis and imposition of penalty under Section 11AC of the Central Excise Act, 1944. 2. Ld. Counsel for the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs was decided in accordance with the ratio of Ujagar Prints-III. After noticing the decisions in Ujagar Prints-III and Pawan Biscuits Co. (P) Ltd., in a rather brief order, the Tribunal held that it found merit in the submission that assessable value for processed fabric is to be arrived at by adding the processing charges and the processing profit to the cost of grey fabric supplied. Reliance was particularly placed on the observation in Pawan Biscuits Co. (P) Ltd., quoted hereinabove, that the cost of raw material supplied by Britannia will have to be included in addition to the appellant s manufacturing cost and profit of 'raw material'. We have already dealt with the decision in Pawan Biscuits Co. (P) Ltd. and held that that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urts judgment dated 4th November, 1988, it is made clear that the assessable value of the processed fabric would be the value of the grey-cloth in the hands of the processor plus the value of the job work done plus manufacturing profit and manufacturing expenses whatever these may be, which will either be included in the price at the factory gate or deemed to be the price at the factory gate for the processed fabric. The factory gate here means the deemed factory gate as if the processed fabric was sold by the processor. In order to explain the position it is made clear by the following illustration: if the value of the grey-cloth in the hands of the processor is ₹ 20/- and the value of the job work done is ₹ 5/- and the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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