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2018 (2) TMI 139

l) for packing of coconut oil - department was of the view that the price has to be determined upto 1.4.2007 applying Rule 8 and thereafter under Rule 10A(iii) r/w Rule 4 / Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 - whether the appellants have correctly arrived at the assessable value of the job worked goods? - Held that: - The appellants have paid duty on the assessable valueworked out by taking into account the cost of materials plus conversion cost as laid down in the case of Ujagar Prints. The principal manufacturer (M/s.Marico) used the bottles in its factory for filling coconut oil - It needs to be mentioned that Rule 8 applies when goods are not sold. The goods (HDPE bottles) are sold .....

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for filling coconut oil for clearing their products. Since the appellants were a job worker, the assessable value of the goods manufactured by them was computed on the basis of formula laid down by the Hon ble Supreme Court in the case of Ujagar Prints Ltd. The department was of the view that the price has to be determined upto 1.4.2007 applying Rule 8 and thereafter under Rule 10A(iii) r/w Rule 4 / Rule 8 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 wherein the appellant is required to pay duty @ 110% of the cost of production. Show cause notices were issued raising the above allegation and proposing to demand differential duty for the period 2003 04 to 2008 09. After adjudication, the original author .....

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ds are not sold by assessee but are used for own consumption or on his behalf. In the instant case, goods are sold to M/s. Marico by the appellant who consume the same for filling the coconut oil. M/s. Marico Ltd. supplies the necessary raw materials to appellant. The HDPE bottles manufactured by appellants are cleared on cost plus conversion basis as per cost certificate given by M/s.Marico. the bottles are manufactured without caps. The conversion charges include the profit margin and therefore the addition of notional profit of 10% to the cost does not arise. He relied upon the decision of the Tribunal in the case of Advance Surfactants India Ltd. Vs. Commissioner of Central Excise, Mangalore 2011 (274) ELT 261 (Tri. Bang.). He also subm .....

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puted fact in these cases is the appellant herein is a job worker manufacturing LABSA for M/s. HUL. It is also undisputed that HUL gives LAB and the appellant uses other consumables in the manufacture of LABSA. It is also undisputed that the appellant has been valuing the said LABSA cleared from factory premises, based upon the cost of material plus processing charges prior to 1-4-2007 when the provisions of Rule 10A were inserted into the Central Excise Valuation Rules, 2000. It is also undisputed that the said LABSA is returned back to M/s. HUL for further consumption in their factory premises for manufacturing of soaps and detergents. It is nobody s case that LABSA consumed by HUL is on behalf of the appellant herein. 7. On these factual .....

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ination of the value of the excisable goods : Provided that the cost of transportation, if any, from the premises wherefrom the goods are sold, to the place of delivery shall not be included in the value of excisable goods. Explanation. - For the purposes of this rule, job-worker means a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him. 7.1 It can be seen from the above reproduced provisions that provisions of Rule 10A can be brought into play only when there is a situation where excisable goods are produced or manufactured by a job worker on behalf of a person and cleared to the buyer .....

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