TaxTMI 
TaxTMI 
2012 (5) TMI 271
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....chedule to Central Excise Tariff Act, 1985. They are manufacturing the said goods from the raw materials supplied by M/s Marico Ltd., and after manufacturing they were supplying the goods to M/s Aero Pharma Pvt. Ltd., Thane for use by the latter for packing hair oil bearing the brand name of Marico Ltd., on payment of excise duty. The appellants were discharging the excise duty on the cost of raw materials plus job charges. The department was of the view that the assessees were not paying duty on the correct assessable value and the duty should have been paid under rule 8 of the Central Excise Valuation Rules, 2000 and the value for the purpose of duty should be 110% of the cost of production. Accordingly, a show-cause notice dated 09/06/20....
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..... 3.1 The Ld. Counsel also relies on the judgment of this Tribunal in the case of Rolstar Pvt. Ltd. vs. CCE, Daman, reported in 2012(276)ELT 87 (Tri-Ahmd) wherein the Tribunal has considered a situation in respect of goods manufactured on job work basis and cleared back by the assessee to the principal manufacturer, who had given raw materials for doing such job work and consuming the same in further manufacture of final products. In that case, the Tribunal held that Rule 10A of the Central Excise Valuation Rules, 2000 is not applicable and Rule 8 of the Valuation Rules are also not applicable and discharge of duty of liability on the cost of raw materials plus job charges is correct in law as held by the hon'ble apex Court in the case of ....
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....n for the sale, the value of the excisable goods shall be the transaction value of the said goods sold by the principal manufacturer; (ii) in a case where the goods are not sold by the principal manufacturer at the time of removal of goods from the factory of the job-worker, but are transferred to some other place from where the said goods are to be sold after their clearance from the factory of job-worker and where the principal manufacturer and buyer of the goods are not related and the price is the sole consideration for the sale, the value of the excisable goods shall be the normal transaction value of such goods sold from such other place at or about the same time and, where such goods are not sold at or about the same time, at the t....
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.... job worked goods from a place from the where the goods are to be sold after clearance from the factory of the job worker. The department's case is that Rule 8 would apply, but reading of the Rule clearly indicates that it applies to a situation where the goods are captively consumed by the assessee or on his behalf in the production/manufacture of other articles. The manufacturer/assessee in the instant case is the appellant job worker and not the raw materials supplier. The appellant is not captively consuming the said items; therefore, Rule 8 has no application whatsoever to the facts of the case. 5.5 This Tribunal in the case of Advance Surfactants India Ltd., cited supra, in an identical situation, held that Rule 10A(i) or (ii) or Rul....