valuation in jobwork

[rajkumar shukla]

What will be assessable value in case manufacturer is a jobworker manufacturing excisable goods on behalf of principal manufacturer but the principal is not selling the excisable goods but it is being used  by it. accoring to me rule 10A and 10 of valuation rules are not applicable. Rule 8 is most likely rule but for rule 8 needs cost of production. whose cost of production is to be reckoned for the purpose? IS IT JOB WORKER OR PRINCIPAL?

AI Summary

Debate on Assessable Value for Excisable Goods by Job Workers: Rule 8 Applicability and Cost Calculation Approach. A discussion on a forum revolves around determining the assessable value for excisable goods manufactured by a job worker for a principal manufacturer who uses the goods but does not sell them. The conversation explores the applicability of valuation rules, with suggestions that Rule 8 might apply, requiring the cost of production. The debate continues on whether the cost should be based on the job worker or the principal. It is suggested that the assessable value should include raw material cost, job work charges, and an additional percentage. The landed cost should consider freight and be net of CENVAT.