Appellate Tribunal overturns profit margin addition in job work basis appeal

The Appellate Tribunal CEGAT, Mumbai allowed the appeal of the appellant, a manufacturer operating on a job work basis. The Tribunal overturned the decision of the Collector (Appeals) who had added a profit margin, stating it was already included in the job charges quotation. The issue of computing notional profit remains open, with the Tribunal emphasizing the department's burden to disprove the inclusion of the profit margin in the job charges, referencing a prior judgment.

---

---

The Appellate Tribunal CEGAT, Mumbai allowed the appeal of the appellant who manufactured goods on job work basis. The Collector (Appeals) had added a profit margin, but the Tribunal set aside this decision, stating that the profit margin was already included in the quotation for job charges. The issue of computing notional profit remains unresolved. The Tribunal referred to a previous judgment where it was held that the department must disprove the claim that profit margin was already included in the job charges.

---