TMI Blog2002 (1) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... . They manufacture the said goods on their own account and also on job work basis. The assessee sell the goods manufactured by them at their factory gate and also manufacture the goods on job work basis and clear them to the suppliers of raw materials. The dispute is with reference to the determination of value of goods manufactured on job work basis. In the present case, M/s. Vishakapatnam Steel Plant (VSP) supplied the goods, the raw materials, to the assessee. The goods are manufactured by the assessee on job work basis. It is alleged in the show cause notice that the assessees have not determined the value of the goods on the basis of normal price applied to such goods manufactured and sold by them at their factory gate. It is also prop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apatnam Steel Plant should be adopted as the assessable value in respect of the goods manufactured on job work basis, in view of the ruling of the Supreme Court in the case of Ujagar Prints reported in 1989 (39) E.L.T. 493 (S.C.). He submitted that the Tribunal has been consistently taking this view following the rulings given by the Apex Court as can be seen in the case of Sangam Processors (Bhilwara) Ltd. v. CCE, Jaipur [2000 (122) E.L.T. 45] as well as in the case of Shaloo Textiles Others v. CCE, Jaipur [2001 (134) E.L.T. 513 (T) = 2001 (47) RLT 280]. In the case of Sangam Processors, it was held that when the trader gives value as a selling price of the processed fabric that price given by the trader must be accepted by the job worke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with reference to the applicability or otherwise of Rule 6B of Central Excise Valuation Rules, but not on the point at issue. She referred to the decision of the Tribunal in the case of Agarwal Steel Complex reported in 2001 (128) E.L.T. 505 and Kandivli Metal Works reported in 1997 (90) E.L.T. 187 wherein it was held that Rule 6B applies only in one situation when the goods are captively consumed and not applicable in cases of job work. She pointed out that case law referred to by the other side is applicable in determining the value of goods produced on job work basis, when no identical goods are produced by the assessee. She also said that ratio of the decision of the Supreme Court in the case of Ujagar Prints (supra) is not applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tnam Steel Plant which includes trader's profit margin as well. As such, though in terms of the Apex Court's judgment, the profit margin of Vishakapatnam Steel Plant need not be included in the value of the goods, the assessees have included it and have paid duty thereon. In view of this position there was no cause to raise further demand. It has also been settled by various High Courts starting from Madras High Court in the case of Lucas T.V.S. Ltd. v. Assistant Collector of Central Excise, Madras others [1981 (8) E.L.T. 657] that there can be any number of prices at which the same goods can be sold on the same day and all these prices shall be the normal prices for the said goods. Hence, price at which the goods are manufactured on own ..... X X X X Extracts X X X X X X X X Extracts X X X X
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