TMI Blog2005 (3) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... ssettes made on job work basis for their clients during the period from 1-3-1997 to 8-9-1997, on an application of extended period of limitation, ordered confiscation of pre-recorded audio cassettes seized from the premises of M/s. Impact (C F Agents of M/s. Polygram (India) Limited, one of the clients of the assessee) with an option to redeem the goods on payment of fine, ordered confiscation of pre-recorded audio cassettes seized from the premises of the assessee with an option to redeem the goods on payment of fine and imposed penalties in accordance with the provisions of Rule 209A of the Central Excise Rules, 1944, as under :- 1. Rs. 30,43,892.00 - On the assessee 2. Rs. 4,00,000.00 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both sides. On merits, the issue stands decided against the assessee by the Tribunal's Order No. A/402/WZB/2004/C-II dated 11-6-2004 in the case of M/s. Koch Rajesh CD India Pvt. Ltd. [2004 (176) E.L.T. 427 (T)] wherein it has been held that the value of Digital Audio Tape, inlay cards and jewel box for packing of the CDs is includible in the assessable value of recorded audio and video CDs manufactured on job work basis. The Tribunal's order considers all the arguments raised before us in the present case of the assessee and rejects them relying upon the decision of the Larger Bench in the case of Mutual Industries Limited v. CCE, Mumbai - 2000 (117) E.L.T. 578 (Tri.) and the Apex Court's decisions in the cases of M/s. Dugar Electronics v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee and M/s. Music India Limited are not related persons and hence the proceedings were dropped. 4. However, the duty demand cannot be sustained in its entirety for the reason that the basis of that demand namely, adoption of the wholesale price of the music companies, has been given up by the Adjudicating Authority. The demand will have to be re-worked out by first obtaining the wholesale price of the music companies and allowing of permissible deductions as set out in the CBE C Circular No. 619/10/2002 CX., dated 19-2-2002, by the Commissioner to whom the case is remanded for re-quantification of duty in the light of circular cited supra. 5. The question of imposing penalties on all the appellants has to be considered afresh by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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