Modvat credit exclusion from assessable value confirmed for copper cables and strips under works contracts

Modvat credit on inputs was held not to be added to the assessable value of the final product in the valuation of copper cables and strips manufactured under works contracts. The Tribunal applied its earlier decision in the same assessee's case and treated that ruling as fully applicable to the present facts, thereby rejecting inclusion of the input credit in the declared value. The appeal was dismissed.

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Issues: Whether the element of Modvat credit taken on inputs was to be added to the assessable value of the final product.

Analysis: The dispute concerned valuation of copper cables and strips manufactured under works contracts. The Tribunal noted that an earlier decision in the respondent's own case had already held that Modvat credit on inputs should not be added to the declared assessable value of the final product. That view was treated as applicable on all fours to the present facts.

Conclusion: The element of Modvat credit on inputs was not includible in the assessable value, and the appeal was dismissed.

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