Assessable value of free-supplied moulds and patterns upheld, while SSI eligibility was remanded for fresh factual reconsideration.

Binding Larger Bench precedent governed valuation, so the proportionate value of moulds and patterns supplied free by customers remained includible in the assessable value of castings; the exclusion claim for old moulds and patterns failed. The assessee's separate plea for small scale industry exemption within the thirty lakhs threshold depended on recomputation of turnover after that inclusion, and no factual finding had been recorded on that point. That issue was therefore remanded for fresh consideration after recomputation and hearing, leaving the valuation ruling intact but reopening SSI eligibility on facts.

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Issues: (i) Whether the proportionate value of moulds and patterns supplied free of charge by customers was includible in the assessable value of castings. (ii) Whether the assessee's claim to small scale exemption within the thirty lakhs threshold required fresh consideration.

Issue (i): Whether the proportionate value of moulds and patterns supplied free of charge by customers was includible in the assessable value of castings.

Analysis: The binding Larger Bench precedent had held that the proportionate value of moulds continues to be added even after the moulds have been utilised to their full capacity. Following that precedent, the claim for exclusion of the cost of old moulds and patterns from assessable value could not succeed.

Conclusion: The inclusion of the proportionate value of free-supplied moulds and patterns in the assessable value was upheld, against the assessee.

Issue (ii): Whether the assessee's claim to small scale industry exemption within the thirty lakhs threshold required fresh consideration.

Analysis: The assessee had raised a specific plea that, even after inclusion of the pattern value, the turnover would not cross the SSI threshold. No finding had been recorded by the lower authorities on this aspect, so the issue required reconsideration on facts.

Conclusion: The matter on SSI eligibility within the thirty lakhs limit was remanded for de novo consideration, in favour of the assessee.

Final Conclusion: The valuation objection failed on merits, but the dispute was sent back for fresh determination of SSI eligibility after recomputation and hearing.

Ratio Decidendi: Where a binding Larger Bench precedent governs valuation, the proportionate value of free-supplied moulds and patterns is includible in assessable value, while any separate claim to SSI exemption requiring factual verification must be examined afresh by the original authority.

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