TaxTMI 
TaxTMI 
TaxTMI 
2014 (4) TMI 1115
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....tions of notification provided for such benefit, the appellant has to be an actual user or it should be utilised by a job worker for the manufacture of items and the imported items cannot be sold as such. Appellants got goods like polypropylene films, LDPE films, HDPE bags etc. manufactured by their job workers. A portion of the goods were sold after the job workers manufactured the same and substantial portion was sold to the job workers themselves. After taking up the investigation and requiring the assessee to produce the Chartered Accountant certificate in accordance with CAS4 and finding that according to CAS4 certificate, the value according to the cost of production would come to more than the price at which the goods were sold in so....
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....lance sheet of the appellant that during the year of transactions, the appellant had made a net profit of more than Rs. 2.59 crores. According to him this would show that the sales were not below cost and in any case only a small portion of sales was below cost. 3. Learned AR submits that the transaction value has been rightly denied in view of the fact that the appellant was selling the goods to the job workers themselves at a substantially lower price. He would show that the cost of production worked out by the Chartered Accountant even without adding profit margin, in some cases is lower than the price at which goods have been sold to independent buyers. He submits that Commissioner has rightly invoked the provisions of Rule 11 of ....
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.... 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 time nearest to the time of removal of said goods from the factory of job-worker; (iii) in a case not covered under clause (i) or (ii), the provisions of foregoing rules, wherever applicable, shall mutatis mutandis apply for determination of the value of the excisable goods : Provided that the cost of transportation, if any, from the premises, wherefrom the goods are sold, t....
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.... what was not taken into account to arrive at the cost of production by the Chartered Accountant at the time of investigation, was Cenvat credit. Further, we also notice that as submitted by the learned counsel, there is no basis for adopting the profit margin of 41.48%. Commissioner himself has observed that the profit margin has been taken on the basis of the highest price at which the appellant has been able to sell the goods. Taking notice of the fact that there are three types of raw materials imported, different types of goods manufactured, the adoption of the highest price without considering the type of material and other transaction does not appear to be supported by any legal provisions. The rule itself provides for normal transac....