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2018 (2) TMI 917

o be added to the assessable value - Held that: - Rule 6 of the Valuation Rules introduced on 01.07.2000 has amplified the earlier Rule 6 and as also added an Explanation thereto, however, even in the new Rules, there is no provision for non-inclusion of value of scrap where job worker has retained the scrap or sold it of - It is also not the case that the entire value of landed cost plus rate charges plus job work charges have been fully included in the value on which duty has been paid by the appellant. There definitely is a depression in the value adopted by the appellant proportionate to the value of the scrap - decided against appellant. - Time limitation - Held that: - there is no bonafide on the part of appellant, therefore, the .....

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tion Rules which was in force during the material period, the value of the raw materials used in the production only has to be taken into consideration and not the value of scrap that may arise. The value of the scrap was collected by the principals from the job worker by reducing the job charges only. Hence the value of scrap cannot be deducted from the labour charges. She submits that the judgment of the Hon ble Supreme Court in the case of General Engineering Works Vs. CCE, Jaipur 2007 (212) ELT 295 (S.C.) prima facie is against them, however, the said judgment pertains to a period prior to 01.07.2000 for the earlier Valuation Rules when Rule 6 did not have the Explanation which was later introduced. She further submits that on similar i .....

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ion cannot taken as a ground for bonafide belief for non inclusion of scrap value in the assessable value. 4. Heard both sides and have gone through the facts. 5.1 The Supreme Court in the case of General Engineering Works (supra) had laid down the following ratio in respect of a situation where waste and scrap arising out of manufacturing process were not retained by the job work but sold of by them: 5. It must be clarified that the value of scrap would be included in the value of the points and crossings only in case where it is shown that the conversion charges get depressed by the fact that the processor is allowed to keep and sell the scrap. Thus in the example given above, it would have to be shown that the conversion charges are S .....

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ed by the sale of scrap. In this view, we are in agreement with the view of the Tribunal that in computing the value of points and crossings the value of scrap sold has to be taken into account. 8. Reliance was placed upon the case of Hindustan Engineering & Industries Limited v. CCE, Calcutta-I reported in 2002 (144) E.L.T. 418 (Tri. - Kolkata). In this case CEGAT has held that the value of scrap is not to be included in working out the value of points and crossings. CEGAT has so held on the basis that in working out the value of points and crossings, the entire value of the raw material supplied was taken into consideration and also that excise was being paid on the scrap which had been sold. CEGAT has so opined even though an earlier .....

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ence, the excise paid on the second commodity has no relevance in working out the value of the first commodity, i.e. points and crossings. The decision in Hindustan Engineering & Industries Limited s case (supra) will therefore stand overruled. 5.2 The Ld. Advocate has contended that the above judgment has been made in respect of the old Valuation Rules, which were in force prior to 01.07.2000, will not be applicable to their case. We are unable to appreciate this contention. True, Rule 6 of the Valuation Rules introduced on 01.07.2000 has amplified the earlier Rule 6 and as also added an Explanation thereto, however, even in the new Rules, there is no provision for non-inclusion of value of scrap where job worker has retained the scrap .....

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