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TMI Blog2018 (5) TMI 1457X X X X Extracts X X X X X X X X Extracts X X X X ..... e has alleged that all kinds of expenditure including the depreciation and royalty incurred for manufacture of P & P medicines on job work for ten products, should be taken into consideration for arriving at a transaction value of such goods. SCN has adopted a total amount of Rs. 36,82,925/- being the amount shown in the balance towards the depreciated amount of technical know-how and royalty and proposed demand of amount of Rs. 6,01,053/- towards Central Excise duty along with interest and penalties under various provisions of law. In adjudication, these proposals have been upheld along with imposition of equal penalty under Section 11AC of the Act. The order of the adjudicating authority has been upheld by the Commissioner (Appeals) vide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been made in the show cause notice for amortization of the cost of die and development charges toward the final product cleared by the appellant. Therefore, the show cause notice is defective. If, in the show cause notice the cost of die and development charges had been amortized, in that case definitely, the appellant was liable to pay duty, on amortized cost but same has not been done. In these circumstances, we are bound to follow the decision of this Tribunal in the case of Ashok Iron Works Ltd. (Supra) wherein this Tribunal has observed as under : "We find that in this case development charges were recovered by the appellants separately. These developmental charges would have gone into the cost of the patterns manufactured and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id on the value of such Dies/Moulds and hence there is no need to amortize the cost of the Dies/Moulds on to the goods manufactured by the appellant. We find that the Dies/Moulds though cleared on payment of duty to their customers were received in their factory under invoices. It is also on record that the appellant has availed the Cenvat credit of the duty paid on such Dies/Moulds upon their return to appellant's factory for use in the manufacture of goods for the customers. It is not clear whether through such invoices only the Cenvat duty paid on the Dies/Moulds have been returned or whether the cost of such Dies/Moulds also stands returned. In the latter case, the Dies/Moulds would effectively become free supply in the hands of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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