1999 (1) TMI 337

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.... raw material over and above the weight of points and crossings supplied by them to the Railways after job work. In determining the assessable value the appellants paid duty on the gross weight of raw material supplied by the Railways to the appellants plus the job charges as per the contract between them and the Railways and duty was paid thereon. In the contract there is a stipulation that the waste arising in the course of manufacture of points and crossings which is to the tune of 5% of the net weight supplied in the form of points and crossings is to be retained by the appellants and is sold by them. It is the value of this waste which is the subject matter in this case. Revenue contends that this value of waste at which the appellants....

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.... from the aforesaid submission, learned Advocate also submits that the lower authorities have erred in determining the quantum of demand of duty on that basis. He submits that the lower authorities have included the sale price of the scrap sold by the appellants during the period of various show cause notices. He submits that this approach of the lower authorities in determining the quantum of demand is not correct because the waste sold by the appellants has arisen not only during the course of manufacture of the points and crossings which is the subject matter of dispute here but also the waste arising in the course of manufacture of other products. The weight of waste arising in the course of manufacture of other products cannot be taken....

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....y them. The sale proceeds therefore clearly have a bearing on the job work charges which were realised by the appellants and is an additional consideration in respect of job work done by them. The same therefore have to be reckoned towards the assessable value. We in the circumstances hold that in all those cases where the scrap has been retained and the sale proceeds of the same retained by the appellants, the sale proceeds have to be taken as additional consideration to be reckoned towards job work charges and therefore have to be added for consumption of the assessable value." He, therefore, submits that the sale price of the waste material arising in the course of manufacture of points and crossings which have been retained by the appe....