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TMI Blog2019 (10) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of excisable goods and are also availing Cenvat credit benefit under Cenvat Credit Rules, 2004. Department, during the scrutiny of their record observed that the appellants are manufacturing and clearing casting items (machinery parts) to various customers. These casting items were manufactured as per the specification of drawing supplied by the buyers of such casting items. With this observation, Department while forming an opinion that the value of the said drawings has not been added in the assessable value that the show cause notice dated 4 November 2008 was served upon the appellant proposing the recovery of amount of Rs. 6,33,497/- alongwith interest at the appropriate rate and the proportionate penalty. The said proposal was ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal order of this Tribunal No. A/56665 of 2017 - EX (DB) dated 21 September 2017 in the case of M/s Magadh Precision Equipments Ltd. versus Commissioner of Central Excise, Indore submitting that the issue about the inclusion of casting of drawings rather stands decided in favour of the department. The appeal is accordingly prayed to be rejected. 4. After hearing both the parties, we observe and hold as follows :- (i) The only contention to be adjudicated is as to whether the value of drawings provided by the customers to the appellant for manufacturing of the casting items has to be included in the assessable value or not. (ii) Section 4 of Central Excise Act readwith with Rule 6 of Central Excise Valuation (Determination of Price of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ney value of any additional consideration flowing directly or indirectly from the buyer to the assessee. Explanation 1 - For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the allowing goods and services, whether supplied directly or indirectly by the buyer free of charge or at reduced cost to use in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the goods being valued and aggregated accordingly, namely :- (i) Value of materials, componen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Equipments Ltd. versus Commissioner of Central Excise, Indore. The decision of the Tribunal, as relied upon by the appellant is opined to be not applicable to the facts and circumstances of the present case. 6. Coming to the aspect of imposition of penalty on the appellant. The appellant has taken the plea of prevalent confusion but we observe from the record that the appellant was several time asked by the department to produce the evidence about receipt of drawings free of charge and that the same never provided nor ever was declared in the ER-1 returns. Such a conduct of the appellant rather corroborate the alleged intention of the appellant to not to include the value of drawings into the assessable value so as to evade the duty. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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