TaxTMI 
TaxTMI 
1998 (7) TMI 422
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....oida whereby the latter had approved price list filed by the appellant, M/s. Flex Graphite Limited with the direction that the cost of dies realised separately by them from their customers should be loaded to the assessable value of printed pouches of Aluminium foil laminates manufactured by them. 2. Arguing the case of the appellant, Shri S. Ganesh, learned Counsel contended that the cost of the dies realised from the customer by the appellant did not constitute the consideration for sale of the assessable goods, namely, printed pouches. It is not additional consideration for such printed pouches to attract Rule 5 of the Central Excise (Valuation) Rules, 1975. That realisation was the cost of the dies and not for the pouches. No ca....
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....in the machine for the printing job. For large orders they do not charge the cost of the die. Part of the price of pouches is not received in the guise of cylinders. Learned Counsel referred to the decision of Collector of Central Excise v. Shardlow-India Ltd. - 1999 (110) E.L.T. 772 (Tribunal) = 1997(70) ECR 545 and pleaded that the appeal be allowed. 3. Shri M. Ali, learned Departmental Representative stated in reply that part of the manufacturing cost of pouches attributable to the dies has not been included in the price of pouches but received separately as the cost of the dies. This receipt had not been intimated to the Department. He referred to the Tribunal decision in Dugar Electronics v. Collector of Central Excise, Calcutt....
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....Order 85-87/97-A, dated 17-1-1997 in Appeal Nos. E/435/96-A, E/436/96-A and E/1047/94-A [1997 (91) E.L.T. 120 (Tribunal)]. Question on the aspect of accounting or of depreciation of the cost of the dies raised before us do not alter the fact that the dies in question had been developed by the appellant for the manufacture of the printed plastic pouches and the price thereof (dies) recovered from the concerned customers. For machinery and other capital equipment used for the manufacture of the goods sold to customers, appellant has, no doubt, taken into account, their cost, interest charges, depreciation etc. in the pricing of such products and the prices so fixed include proportionate amounts attributable to such factors. Such is not the ca....
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....of the cost of the pattern being made depending upon the expected life and capability of the pattern and the quantity of castings that can be manufactured from it would apply to the cost of apportionment of cylinder used in the manufacture of printed pouches. The Bench proceeded to observe as below :- "It may be considered that cylinder is used and consumed in the manufacture of printed pouches; but it is not used in the sense in which raw material is used in manufacture of a product, in such case, the conversion or use of raw material is done quickly and it is easy to correlate a definite quantity of raw material and its' value with definite quantity of finished product and its' value. In the present case, the use of cylinders is in suc....