TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the value of components supplied free of cost under Rule 57F(2) was required to be included in the assessable value of the final product manufactured by the job worker, and whether the demand could be neutralised on the basis of Modvat credit or an alternate credit claim.
Analysis: The inputs were supplied to the appellant under Rule 57F(2) for use in manufacture of the final excisable product, and the appellant cleared the finished goods on payment of duty. The assessable value had to be determined under Section 4 of the Central Excise Act, 1944 on the intrinsic value of the goods, which included the cost of free-supplied components. The fact that the inputs moved under Rule 57F(2) did not alter the valuation principle. The plea of revenue neutrality failed because the duty on the inputs had already been availed as Modvat credit by the supplier, and the appellant could not claim the same credit again. The alternative request for allowing credit to the supplier was not examined in the appeal and was left to be pursued before the proper officer.
Conclusion: The value of the free-supplied components was correctly included in the assessable value, and the Modvat-credit-based challenge failed.
TaxTMI 
