TMI Blog2019 (7) TMI 1795X X X X Extracts X X X X X X X X Extracts X X X X ..... to determine the assessable value of job-worked goods correctly. The principles of law laid down in UJAGAR PRINTS ETC. ETC. VERSUS UNION OF INDIA OTHERS [ 1989 (1) TMI 124 - SUPREME COURT] is squarely applicable to the present case inasmuch as the landed cost of the raw materials and conversion charges, which includes the margin of profit of job-worker, is the basis for arriving at the assessable value of the job worked goods in the hands of the job worker. Therefore, the proposal to include the overheads of the supplier of raw materials purchased from the open market and delivered directly at the premises of the appellant, cannot form part of the assessable value. Inclusion of Landed cost of the raw material in assessable value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods were sold by M/s Marico Industries Ltd. On adjudication, the Assistant Commissioner adopted the principle applicable for determination of assessable value of goods manufactured on job-work basis under the erstwhile Central Excise Valuation Rules, 1975 and confirmed the differential duty of ₹ 2,78,147/- for the said period. In arriving at the assessable value, the learned Assistant Commissioner (Appeals) accepted the C.A. Certificate submitted by the appellant providing breakup of total cost of raw material, conversion cost which includes the profit margin of the appellant. Aggrieved by the said order, the Revenue filed an appeal before the learned Commissioner (Appeals), who in turn, set aside the impugned order and remanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rheads expenses of M/s Marico Industries Ltd. in the cost of raw materials purchased and supplied is unsustainable and contrary to the principles of valuation. He has submitted that the C.A. certificates provided by them clearly reflects the cost of raw materials, packing material, overhead expenses which included the profit margin of the appellants. The raw materials cost is nothing but the landed cost of the raw material at the door step of the appellant, who used the said raw material and the packing material in the manufacture of finished goods on job work basis. He submits that in view of the principles laid down by the Hon'ble Supreme Court in the case of second Ujagar Prints case reported as Ujagar Prints, Etc. Etc. Vs. Union o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rates the findings of the learned Commissioner (Appeals). He submits that the invoices that are now placed in support of the claim that the raw materials cost taken by the Chartered Accountant in their certificate is the landed cost at the door step of the appellants, were not produced earlier. He submits that the said invoices need to be verified. 5. We have carefully considered the submissions advanced by both sides and perused the records. 6. This is the second round of litigation before this Tribunal. In the first round of litigation, taking into consideration the facts and circumstances of the case on record, this Tribunal arrived at the conclusion that collecting evidence by way of recording statements of Mr. S.S. Marathe, afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant, in our opinion, cannot form part of the assessable value. As far as the landed cost of the raw material is concerned, we find that the same includes the element of freight as well as transit insurance being evident from the sample copies of the invoices placed by the appellant in the paper book. Therefore, the method of assessment of job worked goods arrived at by the adjudicating authority on the basis of C.A. certificate is correct and in accordance with the law. However, for the limited purpose of verification of the sample invoices submitted before this forum, we remand the matter to the adjudicating authority. 9. Appeal is allowed by way of remand. (Operative portion of the order pronounced in court) - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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