Tribunal Allows Appeal on Assessable Value of Goods for Asian Paints Ltd.

The Appellate Tribunal CESTAT, Mumbai allowed the appeal challenging the Order-in-Appeal regarding the assessable value of goods manufactured for Asian Paints Ltd. on a job work basis. The Tribunal upheld the job worker's application of Section 4 for valuing goods in 200 Ltr drums, not covered under Section 4A, rejecting the revenue's proportionate calculation argument. Relying on the precedent in Ujagar Prints v. UOI, the Tribunal found no error in the valuation method applied by the appellant. Consequently, the Tribunal set aside lower authorities' orders, emphasizing the correct legal principles in determining the assessable value of goods in bulk packs.

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Issues involved: Determination of assessable value for goods cleared in bulk packs u/s Section 4A and job work basis.

Summary:
The appeal before the Appellate Tribunal CESTAT, Mumbai challenged Order-in-Appeal No. 253/M-V/2002, which pertained to the manufacturing of paints and stainer for Asian Paints Ltd. on job work basis. The dispute centered around the assessable value of products cleared in smaller packs and 200 Ltr drums, with the revenue contending for a proportionate calculation based on the smaller packs' value. However, the Tribunal noted that the appellant, a job worker for Asian Paints Ltd., correctly applied the provisions of Section 4 for determining the assessable value of goods in 200 Ltr drums, as they were not covered under Section 4A. Citing the decision in Ujagar Prints v. UOI, the Tribunal held that the appellant had not erred in valuing the goods as per the formula established in the mentioned case. Consequently, the Tribunal set aside the orders of the lower authorities and allowed the appeal, emphasizing the correct application of legal principles in determining the assessable value of the goods cleared in bulk packs.

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