https://www.taxtmi.com/caselaws?id=51245 Under Section 4(1)(b) of the Central Excise Act, 1944 and Rule 5 of the Central Excise (Valuation) Rules, 1975, the duty element on Modvat-covered input rails supplied free of cost was held not to form part of the assessable value of railway points and crossings. The Tribunal applied the principle that the excise duty component on input material is not added again in valuation, and rejected any distinction between purchased inputs and free-supplied inputs. It further held that scrap sale proceeds from the same rails were not separately includible as additional consideration, because the contract treated the scrap as non-returnable, the value basis had already absorbed the quantity involved, and duty had been paid on the scrap. en-us Fri, 10 May 2002 00:00:00 +0530 Thu, 23 Sep 2010 16:14:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=51245 Under Section 4(1)(b) of the Central Excise Act, 1944 and Rule 5 of the Central Excise (Valuation) Rules, 1975, the duty element on Modvat-covered input rails supplied free of cost was held not to form part of the assessable value of railway points and crossings. The Tribunal applied the principle that the excise duty component on input material is not added again in valuation, and rejected any distinction between purchased inputs and free-supplied inputs. It further held that scrap sale proceeds from the same rails were not separately includible as additional consideration, because the contract treated the scrap as non-returnable, the value basis had already absorbed the quantity involved, and duty had been paid on the scrap. Case-Laws Central Excise Fri, 10 May 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=51245