Case Law Details
Cosmos Conductors Pvt Ltd Vs Commissioner of C.E. (CESTAT Bangalore)
CESTAT Bangalore held that rule 11 of Central Excise Valuation Rules, 2000 will be applicable for determination of assessable value of goods manufactured on job work basis.
Facts- The appellants are engaged in manufacture of insulated copper conductors falling under Chapter sub-heading 85441190 of the Central Excise Tariff Act, 1985. Also, they undertake manufacture of said goods on job work basis. During the period from 01.04.2007 to 08.09.2008, the appellants had carried out manufacture of said goods on job work basis on inputs supplied by the principal manufacturers, however, short paid duty of Rs.20,02,796/- on the value of the said job worked goods.
Accordingly, show cause notice was issued to them on 31.03.2009 for recovery of the differential duty of Rs.20,02,796/- for the period from 01.04.2007 to 08.09.2008 with interest and proposal for penalty. On adjudication, the demand was confirmed with interest and penalty. Commissioner (A) upheld the order of adjudicating authority. Being aggrieved, the present appeal is filed.
Conclusion- Hon’ble Supreme Court in the case of CCE, Pune vs Mahindra Ugine Steel Co Ltd. interpreting Rule 8 and Rule 11 of Central Excise Valuation Rules, 2000 for determination of the assessable value of the goods manufactured on job work basis held that Rule 11 would be applicable in arriving at the assessable value of the excisable goods.
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