TaxTMI 
TaxTMI 
2009 (5) TMI 486
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....bin Blue" retail packs on job work basis and it was alleged that there was under valuation as they had not included a margin of 15% on the cost of production of the main raw materials viz Ultramarine Blue in bulk form. The said ultramarine blue in bulk form is cleared by respondent's Principal M/s. Reckitt Benckiser India Ltd., on payment of appropriate duty on the cost of production plus 15% margin as provided under Rule 8 of the Central Excise Valuation Rules, 2000. After receipt of the said ultramarine blue in bulk form, respondent repacked the same into retail pack and was discharging duty on clearance of such retail packs by arriving at the value by the formula as is settled by Hon'ble Supreme Court in the case of Ujagar Prints i.e. co....
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....8 (228) E.L.T. 43 (Tri. - L.B.) would cover the issue in favour of Revenue. It is his submission that the Larger Bench has not considered many aspects of the issue before coming to such a conclusion. He would submit another decision of Larger Bench in the case of Ispat Industries Ltd. v. CCE, Raigad - 2007 (209) E.L.T. 185 (Tri. - LB) has held that- provisions of Rule 8 of Valuation Rules will apply to only when two different units of a manufacturer are involved not when two different manufacturers are involved. He would, also submit that the C.B.E. & C. Circular dated 13-2-2002 clearly lays down that profit element of the raw material supplier should not be included while arriving at the assessable value of finished goods produced on job w....
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....decisions state that profit margin of the raw material supplier should not be included in the assessable value. 5. We have considered the submissions made at length by both sides and perused the records. We find that the question which was referred to the Larger Bench in the case of Eicher Motors Ltd. (supra) was as under: "Whether the value of the excisable goods used for manufacture of other article, which is required to be worked out under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000, read with Rule 2 (c) thereof which are made for the purpose of Section 4(1) (b) of the Central Excise Act, 1944, will be considered to be the value of such inputs, while assessing the value of such oth....
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....een is whether Bhilwara Processors was decided in accordance with the ratio of Ujagar Prints-III. After noticing the decisions in Ujagar Prints-III and Pawan Biscuits Co. (P) Ltd., in a rather brief order, the Tribunal held that it found merit in the submission that assessable value for processed fabric is to be arrived at by adding the processing charges and the processing profit to the cost of grey fabric supplied. Reliance was particularly placed on the observation in Pawan Biscuits Co. (P) Ltd., quoted hereinabove, that "the cost of raw material supplied by Britannia will have, to be included in addition to the" appellant's manufacturing cost and profit of raw material". We have already dealt with the decision in Pawan Biscuits Co. (P) ....
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....alue of the vehicle, particularly when in respect of other goods procured directly by them on the account of Eicher, used as raw material, their transaction value is taken into account and credit is taken of the duty paid on those goods. 29. In the above premises, we conclude that the value of chassis for the purpose of arriving at the assessable value of the complete motor vehicle shall be the assessable value of the chassis worked out by Eicher under Rule 8 of the Excise Valuation Rules, and not its actual cost. The questions framed in the order of reference are accordingly answered in favour of the Revenue and against the assessee-appellant." 5.2 We find that the question of law, which has been referred to the Larger Bench, is deci....