1997 (3) TMI 311

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....the Respondents. [Order per : V.P. Gulati, Vice President]. -  This appeal has been filed by the Revenue against the order of the C.C.E. (A) under which he has held that cost of master dies used for the manufacture of excisable goods has to be amortised over a period on the forgings which are cleared and therefore there could not be a one time payment of duty in respect of the charges r....

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....ie which in turn can be used over a period for manufacture of forgings over a period of time. He has pleaded that in this background it may not be feasible for the department to spread the cost for any definite period as there is no indication as to how many forgings can be manufactured through the medium of subsidiary. He, therefore, pleaded that the Revenue has sought for payment of duty for eac....

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....ne time levy notwithstanding the quantum of production of forgings manufactured by the assessee by use of these or it should be spread over the number of forgings which may be cleared ultimately by use of the master die till it becomes unusable. We observe that it will not be correct in law and also equitable to collect duty in respect of expenses incurred on the master die as one time levy. Devel....

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....hich is relatable to the goods which will be manufactured over a period of time. Therefore, what is required under law is that the element of the cost incurred towards master die should be worked out on pro rata basis taking into consideration the normal life span of the master die for the manufacture of certain number of pieces of subsidiary dies or direct use of the die for manufacture of the fo....