AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2007 (7) TMI 422
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....ders were being manufactured by Helio Gravure, Thane, a division of Paper Products Ltd. The Department investigation led it to believe that the charges for making printing cylinders were recovered by the appellant separately from the buyers of that product and did not include these charges in the assessable value of the laminates pouches etc. Notice dated 1-2-1994 was issued demanding duty of Rs. 43.59 lakhs which was alleged to have been short levied. The Collector passed orders in December 1994 confirming the demand and imposed penalty. The assessee challenged the order to the Tribunal. The Tribunal in its order reported in Paper Products Ltd. v. Collector of Central Excise, Bombay [1999 (110) E.L.T. 671] held that the charges that were paid for printing cylinders were includible in the value of the pouches and other such goods. It also held with regard to the service charges that the appellant recovered from its buyers "the activity for which the charges recovered must be regarded as an activity essential to enable the appellant to print the laminated cartons which are the appellant's final products and in this view also, the charges collected would be part of the assessable val....
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.... any material placed before him to support the present stand. It said "in these circumstances, it follows that the amount collected under separate invoices represented, as admitted before the Adjudicating Authority, a part of the cost of printing cylinder". While it noted in Paragraph 8 in accordance with the view taken in Flex Industries case (supra) that the cost of Cylinder must be reflected in the assessable value of the final product over a considerable period by amortizing the most, it stressed again that the appellant before it had no case before the adjudicating authority and the costing of cylinder had been amortized. It specifically stated in Paragraph 12 the matter was being remanded to the adjudicating authority for passing a fresh order after deciding the two aspect, what is the correct rate of duty, if any, chargeable, the correct amount of differential duty, if any payable, and the correct amount of penalty. 7. The CEGAT found that the terms of remand were specific. The order of remand so far as relevant reads as follows: "The last contention urged is that during a substantial part of the disputed period, duty chargeable on the finished products of the appellant wa....
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.... issues by the trial Court and the first appellate Court. This is not a correct interpretation of the order. Obviously, in directing that findings of both courts are set aside, the High Court was referring to the points which the High Court considered and on which the High Court differed from the lower courts. Findings on other issues, which the High Court was not called upon to consider, cannot be deemed to be set aside by this order. Similarly, in permitting amendments, the High Court has given liberty to the present appellant to amend his written statement by setting out all the requisite particulars and details of his plea of res judicata, and has added that the trial Court may also consider his prayer for allowing any other amendments. On the face of it, those other amendments, which could be allowed, must relate to this very plea of res judicata. It can not be interpreted as giving liberty to the appellant to raise any new pleas altogether which were not raised at the initial stage. The other amendments have to be those which are consequential to the amendment in respect of the plea of res judicata." 11. Above being the position, there is no merit in these appeals which are ....
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.... xx (vi) In respect of show cause notice dated 8-9-1995, vide reply dated 26th September, 1995 (Page 173) they submitted that cost of making printed cylinder is divided into two types of costing: (a) Cylinder per se, which is made of metal i.e. copper, is the property of M/s. Helio Gravure. The cost of the metal cylinder is amortized in the flexible packaging laminate products. (b) Amortization is also done for the Artwork and the design work that are incorporated in the Cylinder." 13. It is to be noted that the Commissioner had adjudicated 23 show cause notices covering the period from 7-9-1993 to 31-3-2000. Earlier these notices were adjudicated vide Order in Original No. 31 /2001 Commr. M VI dated 3-10- 2001 against which Appeal No. E/568/02 Mum was filed. The appeal was disposed of by the CEGAT with the following observations: "The counsel of the appellant contends that identical issue, the inclusion in the cost of manufacture of finished goods i.e. printed plastic sheets, the cost of cylinders and a part recovery from ....