TaxTMI 
TaxTMI 
TaxTMI 
2007 (1) TMI 19
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....f scrap (scrap credit) was reduced from the assessable value of motor vehicle parts supplied to Mahindra & Mahindra. The price of the parts was worked out as raw material cost + conversion charges + packing + tools amortisation cost less value of scrap generated. The department was of the view that scrap credit value was includible in the assessable value of such motor vehicle parts and that the assessees had undervalued the parts to the extent of scrap credit value. On this basis, show cause notice dated 3-3-2000 was issued inter alia proposing recovery of central excise duty of Rs. 1,90,70,826/- and Rs. 21,304/- on rust preventive oil, together with interest under Section 11AB of the Central Excise Act and Rule 57-I(3) of the Central Exci....
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....cle parts and reversal of Modvat credit availed on inputs taken out of the factory, for the reason that the amounts were very small and had been promptly paid. The Tribunal's order was challenged by the Revenue before the Apex Court which, vide its order dated 25-1-2006 in Civil Appeal Nos. 10223-10226 of 2003 [2006 (203) E.L.T. A184 (S.C.), remitted the matter to the Tribunal for rehearing with reference to the report of the Cost Auditor appointed by the Supreme Court during the course of hearing the appeal on 9-3-2005, in view of the various aspects relating to costing involved as highlighted by the Cost Accountant in his report. The apex court also directed the Tribunal to consider all other connected issues involved in the matter. This ....
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.... by customers for manufacture of goods on job work basis clearly have a bearing on job work charges realised and form additional consideration in respect of job work done, and thus includible in the assessable value. Although the Tribunal subsequently took a different view in the case of Hindustan Engineering & Industries Ltd. v. CCE, Calcutta-I, 2002 (144) E.L.T. 418 by holding that sale proceeds of scrap are not includible in assessable value as the value of entire gross quantity of items manufactured on job work basis, including the quantity which became scrap, was already included in the assessable value, distinguishing the Tribunal's order in Jay Engineering Works Ltd. cited supra, this decision of the Tribunal stands reversed by the A....
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....f the above judgments in their case, scrap credit cannot be included in the assessable value of motor vehicle parts as what was adopted by them as cost of raw material was the value of the entire gross quantity of raw materials including the quantity which became scrap. However, this submission is not tenable in the light of the General Engineering Works judgment cited supra, wherein the Court has held that in working out the value of points and crossings manufactured on job work basis, the entire quantity of 105 kgs. of raw material required for manufacture of 100 kgs. of points and crossings will have to be taken into account. Following the ratio of the Supreme Court's judgment cited supra, we answer issue No. 1 in the affirmative. 5. F....
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....habad, 2001 (134) E.L.T. 713 holding that nondisclosure of information about manufacture and removal of excisable goods from a workshop amounts to suppression of vital information, Sonodyne Televisions Co. P. Ltd. v. CCE, Calcutta, 2004 (176) E.L.T. 823 holding that non-disclosure in price lists of charges for comprehensive maintenance service amounted to suppression, and IFB Industries Ltd. v. CCE, Goa, 2005 (179) E.L.T. 487 holding that the extended period is available when the assessee did not place invoices showing lower value in case of transfer to sister unit, before the central excise authorities, and that the plea of revenue neutrality on account of availability of Modvat credit to sister unit itself cannot be a ground to hold that ....