TMI Blog2023 (8) TMI 1044X X X X Extracts X X X X X X X X Extracts X X X X ..... ings etc. used in production of excisable goods need to form the part of assessable value. In this case, there is no denying the fact that appellant has been collecting mould charges from the buyers of his product and therefore we hold that the amount of mould charges collected by the appellant forms an additional consideration flowing through the appellant and therefore the same need to be included in the assessable value of excisable goods. As per the provision of Central Excise law, the excisable goods first need to be assessed as per provisions of the Section 4 of Central Excise Act, 1944 read with Rule 6 of Central Excise (Determination of Price of Excisable Goods) Rules, 2000. It is irrelevant whether the goods have been cleared fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 4 of Central Excise Act, 1944 for the purpose of discharging Central Excise liability. After due enquiries, following two show cause notices as well as the orders-in-appeal have been issued to the appellant:- Appeal No. OIA No. Period Duty Demand in Rs. E/10594/2020-DB CCESA-SRT (APPEAL) PS- 634/2019-20 Dated 26.02.2020 F.Y. 2014-15, 2015-16, 2016-17 89,37,902/- E/10598/2020-DB April 2017 to June 2017 12,15,760/- Total 1,01,53,662/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om their foreign customers on the quantities of the bottles exported by them. It has been the contention of the learned Chartered Accountant that since the goods have been exported by them they would have paid Central Excise duty on the same even if proportionate mould charges would have got included in the value of exported goods. It has further been submitted that the appellant would have cleared goods on LUT or payment of duty or which would have been otherwise got refunded to them. In this way, the situation is absolutely Revenue neutral and there is no loss of Revenue to the government in this regard. Thus, it has been emphasized by the appellant that there is Revenue neutral and therefore, the impugned order-in-appeal is without any m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned DR who has reiterated the findings given in the order-in-appeal as well as in order-in-original. 6. Having heard both the sides, we find that the only question which needs to be decided by us is whether the charges of moulds separately recovered by the appellant from their customers, amount flowing of additional consideration to the appellant and should have formed part of transaction value for levy of excise duty or not. Before proceeding further, it will be relevant to have a look at the Section 4 of Central Excise Act, 1944 and Rule 6 of Central Excise (Determination of Price of Excisable Goods) Rules, 2000:- Section 4 in the Central Excise Act, 1944 4. Valuation of excisable goods for purposes of charging of duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. Provided that where price is not the sole consideration for sale of such excisable goods and they are sold by the assessee at a price less than manufacturing cost and profit, and no additional consideration is flowing directly or indirectly from the buyer to such assessee, the value of such goods shall be deemed to be the transaction value.] Explanation 1 - For removal of doubts, it is hereby clarified that the value, apportioned as appropriate, of the following goods and services, whether supplied directly or indirectly by the buyer free of charge or at reduced cost for 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... need to form the part of assessable value. In this case, there is no denying the fact that appellant has been collecting mould charges from the buyers of his product and therefore we hold that the amount of mould charges collected by the appellant forms an additional consideration flowing through the appellant and therefore the same need to be included in the assessable value of excisable goods. 7. The only argument the Learned Chartered Accountant has taken is that since the goods have been exported they will get a refund of additional duty which would have been paid at the amount of mould charges, included in the assessable value. In this regard we are of the opinion that as per the provision of Central Excise law, the excisable goods ..... X X X X Extracts X X X X X X X X Extracts X X X X
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