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Jindal Aluminium Ltd. Versus Commissioner of Central Excise And Service Tax, Bangalore-III

2018 (2) TMI 359 - CESTAT BANGALORE

Valuation of job-worked goods - the Department noticed that the appellant did not include the process loss/burning loss of the raw-materials while determining the assessable value of such goods - demand of differential duty - Held that: - the cost of raw-materials supplied to the job-worker is to be included along with the processing charges as well as the element of profit for the job-worker. It is seen from record that the appellant has included only the cost of raw-materials contained in the .....

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nd the normal period of limitation - demand hit on the ground of time bar. - Appeal allowed - decided in favor of appellant. - E/85/2007-DB - Final Order No. 22948 / 2017 - Dated:- 5-12-2017 - Shri S.S Garg, Judicial Member And Shri V. Padmanabhan, Technical Member Shri N. Anand, Advocate For the Appellant Shri N. Jagadish, Superintendent ( AR ) For the Respondent ORDER Per : V. Padmanabhan The appeal is filed against the Order-in-Appeal No. 63/2006 dated 30.10.2006. The appellant is engaged .....

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pays the excise duty on such goods after determining the valuation of such goods as per the guidelines laid down by the Hon ble Supreme Court in the case of Ujagar Prints Vs. Union of India reported in 1989 (39) E.L.T. 493 (SC). During the course of audit of the records of the appellants for the period 9/2003 to 7/2004, the Department noticed that the appellant did not include the process loss/burning loss of the raw-materials while determining the assessable value of such goods. Accordingly di .....

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rits as well as on ground of time-bar. On merits it is his submission that the valuation has been done as per the guidelines laid down by the Apex Court in the Ujagar Prints case and the various components such as the cost of raw-materials and the processing charges including the profit of the appellant has been included. Accordingly there is no ground for further inclusion of burning loss. On the ground of time-bar he submitted that the audit of the unit was conducted in September 2004 but the .....

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the appellant s record, have not pointed out any valuation issues. Accordingly he submitted that the impugned order merits to be set aside. 4. The learned AR, on the other hand, justified the impugned order. He submitted that during the course of audit, the Departmental Officers have examined the records of the assessee, and after discussion with the company s representative, have come to the conclusion that for the purpose of determining the cost of the goods manufactured on job-work, only the .....

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t has mis-declared the cost of input required for the manufacture and that plea of the appellant that the burning loss is not required to be added is only an after thought. Accordingly he prayed for dismissal of the appeal. 6. We consider the issue on merit first. The assessable value of the goods which are manufactured on job-work basis is to be determined on the basis of the guidelines laid down by the Apex Court in the Ujagar Prints case (supra). This means that the cost of raw-materials supp .....

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e concluded that the assessable value of the job-worked goods needs to be re-worked to include the value of raw-materials attributable to the burning loss which has escaped. 7. Turning to the issue of time-bar demand, we note that the appellant s unit has been audited from time to time. The learned counsel for the appellant has brought to our notice that the unit has been audited in 2000-01, 2001-02, 2002-03, 2003-04, 2004-05 and the current audit of 2004-05. 7.1. Further in the case of Trans En .....

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or suppressed the facts from the departments. We find that the Hon ble High Court of Bombay in the case of Rajkumar Forge Ltd. - 2010 (262) E.L.T. 155 (Bom.) held in paragraph No. 13. "13. It is an undisputed fact that insofar as the petitioners are concerned, audit of the petitioners factory was carried out on three dates, i.e., 6th September, 1993, First November, 1995 and 2nd September, 1994. The petitioners vide their letter dated 6th September, 1993 have recorded the visit of the audi .....

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the respondents that they had debited ₹ 2,08,760/- against the Scrap Generation at sub-contractor end, where material is sent for processing under Rule 57F(3) for the period January, 94 to March, 95. Therefore by the said letters the petitioner had made the respondents aware of the payment of duty on the scrap as well as on the Mill Rollers and considering the fact that the respondents had carried out audit on the dates mentioned herein above, the sad fact is conclusive insofar as the kno .....

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