CEGAT Upholds Decision on Assessable Value Exclusion

The Appellate Tribunal CEGAT, New Delhi dismissed the department's appeal against the Collector (Appeals), Bombay's order. The respondent, a job worker, was not obligated to include packing cost and melting loss in the assessable value. The tribunal ruled that the assessable value should comprise only raw material costs, processing charges, and the job worker's profit margin. The appeal was rejected as the respondent had complied with the Assistant Collector's instructions.

---

---

The Appellate Tribunal CEGAT, New Delhi dismissed the appeal filed by the department challenging the order passed by the Collector (Appeals), Bombay. The respondent, a job worker, was not required to add packing cost and melting loss to the assessable value. The tribunal held that the assessable value should include only the cost of raw materials and processing charges, including the margin of profit of the job worker. The appeal was dismissed as the respondent had followed the instructions given by the Assistant Collector.

---