TaxTMI 
TaxTMI 
TaxTMI 
2012 (12) TMI 971
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....dertook manufacturing of column internals on the basis of job work. The materials were supplied free of cost from the foreign party. The applicant exported the goods manufactured from materials supplied free of cost from foreign party and had filed refund claims in terms of Rule 18 of the Central Excise Rules, 2002 read with Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004. 2.2 Scrutiny of the Shipping Bills and ARE-1s filed along with the rebate claims revealed that the value declared on the ARE-1 was much higher than the FOB value appearing on the Shipping Bills. As per Rule 18 of the Central Excise Rules, 2004 duty paid on the 'Transaction Value' in terms of Section 4 of the Central Excise Act, 1944 is to be rebated. In the ins....
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....al position that the applicants have correctly assessed the duty and paid same while exporting goods. The reason given by the adjudicating authority therefore is without support of law. 4.2 It is submitted that the Commissioner (Appeals) erred in not appreciating the legal position that the transaction under dispute required application of Section 4 of the Central Excise Act, 1944 read with Rule 6 of the Valuation Rules as the same involves free supply of material. The Commissioner (Appeals) ought to have appreciated the legal position that in the current transaction the assessable value cannot be arrived at by applying Section 4(1)(a) of the Central Excise Act, 1944 for the simple reason that there is an additional consideration flow....
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....Government has carefully gone through the relevant case records and perused the impugned order-in-original and order-in-appeal. 7. Government notes that the applicant got the goods manufactured on job work basis from materials supplied free of cost by foreign party and exported the same under rebate claim of duty paid on such exported goods. Original authority observed that ARE-1 value was higher than FOB value declared on Shipping Bills. Accordingly, vide impugned Order-in-Original, he sanctioned rebate claim to the extent of duty payable on FOB value and remaining amount was ordered to be re-credited in Cenvat credit account. Commissioner (Appeals) uphold the impugned Order-in-Appeal. Now, applicant has filed these revision applicat....
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.... in connection with the production and sale of such goods, to the extent that such value has not been included in the price actually paid or payable, shall be treated to be the amount of money value of additional consideration flowing directly or indirectly from the buyer to the assessee in relation to sale of the goods being valued and aggregated accordingly, namely :- (i) value of materials, components, parts and similar items relatable to such goods; (ii) value of tools, dies, moulds, drawings, blue prints, technical maps and charts and similar items used in the production of such goods; (iii) value of material consumed, including packaging materials, in the produ....
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....ssioner. In this regard Government notes the procedure from claim rebate of duty paid on exported goods is prescribed in Notification No. 19/2004-C.E. (N.T.), dated 6-9-2004 issued under Rule 18 of Central Excise Rules, 2002. Para 3(b) of said Notification stipulates as under : "(b) Presentation of claim for rebate to Central Excise :- (i) Claim of the rebate of duty paid on all excisable goods shall be lodged along with original copy of the application to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture or warehouse or, as the case may be, the Maritime Commissioner; (ii) The Assistant Co....