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TMI Blog2018 (10) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... ch pattern to the job worker. Subsequently, said patterns were sold to the buyer of raw casting. The case of the department is that the patterns which are owned by the buyer of the goods were since used for manufacturing goods sold to the buyer, the amortization cost of the pattern so used in the manufacture of raw casting should be included in the value of the raw casting. Accordingly, the differential duty demand was raised. The Adjudicating Authority by applying Rule 6 of Central Excise Valuation Rules, 2000 included the value of amortized cost of pattern in the value of final product manufactured and sold by the appellant. Accordingly, differential duty demand was raised which was upheld by Commissioner (A). 2. Shri Amal Dave, Ld. Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it to be decided by us is whether the amortization cost of pattern is to be included in the assessable value of the final product manufactured and sold by the appellant and whether the demand is hit by limitation. As regard the first issue on merit, we find that there is no dispute in the fact that the appellant have used the pattern which belong to the buyer of the goods, which means the appellant have manufactured final product by the use of patterns, supplied free of cost by the buyer to the appellant. In such a case, Rule 6 of Central Excise valuation Rules, 2000 comes into play which reads as follows: "RULE 6.Where the excisable goods are sold in the circumstances specified in clause (a) of sub section (1) of section 4 of the Act exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against delivery of any excisable goods, no notional interest on such advance shall be added to the value unless the Central Excise Officer has evidence to the effect that the advance received has influenced the fixation of the price of the goods by way of charging a lesser price from or by offering a special discount to the buyer who has made the advance deposit. Illustration 1. - X, an assessee, sells his goods to Y against full advance payment at Rs. 100 per piece. However, X also sells such goods to Z without any advance payment at the same price of Rs. 100 per piece. No notional interest on the advance received by X is includible in the transaction value. Illustration 2. - A, an assessee, manufactures and supplies certain goods as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown income from sales of patterns in the balance sheet from which no one can make out that whether the sales of pattern is related to those patterns which were used in the manufacture of final product for buyer by using pattern belonging to the buyer. Therefore, there is a clear suppression of facts and mis-declaration on the part of the appellant. As regard the claim of the appellant that on the same issue second show cause notice invoking extended period was issued, as per the Nizam Sugar Factory (supra), the demand is not sustainable in this regard we observed that the second Show Cause Notice is for the period which is prior to the period of first Show Cause Notice. Since, there is a clear suppression of facts in both the show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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