2013 (4) TMI 126

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....ing the audit of the appellants it was seen that till September 2007 M/s. Honeywell were supplying certain raw materials and components for getting the goods manufactured by the appellants and they were paying excise duty as a job worker. Since September 2007 they had started a new practice under which the appellants were buying inputs from raw material suppliers specified by M/s. Honeywell and they started manufacturing goods according to the design and specification of M/s. Honeywell and also under the supervision of M/s. Honeywell for quality control. Revenue was of the view that during this period also they have to be treated as job worker of M/s. Honeywell. During this period the Central Excise Valuation Rules has been amended to inser....

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.... goods, manufacture goods from such items and sell the goods at arms length to M/s. Honeywell, it is their contention that the price at which the goods are sold to M/s. Honeywell satisfy the requirements of Section 4(1)(a) of the Central Excise Act, 1944 and once the price satisfied such condition there is no reason to resort to Section 4(1)(b) and refer to rules made under Section 4(1)(b) for determining the value of the excisable goods manufactured by them. Therefore, the appellants submits that the demand is not legally sustainable and their appeal should be admitted without any pre-deposit and the collection of dues should be stayed. 3. Opposing the prayer, the learned AR for Revenue submits that the contract entered into between the a....