2017 (2) TMI 313

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....ant Shri N.N. Prabhudesai, Supdt. (AR) for the respondent ORDER Per Ramesh Nair The fact of the case is that the appellant is engaged in the manufacture of motor vehicle parts for Eicher Motor Ltd. Appellants have developed tools for manufacture of such parts for which Eicher Motors has paid the value of the tools. The case of the department is that the appellant has neither paid the d....

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....ivity of the appellant was in the knowledge of the department, hence the notice is time barred. She further submits that the appellant have been carrying out manufacturing of components out of such tools under Rule 4(5)(a) of Cenvat Credit Rules, 2004. In this process no duty was paid, there is no question of inclusion of amortisation cost in the value of the parts manufactured and returned to the....

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....d used to manufacture of motor vehicle parts. It is a settled law that when the tools or dies is supplied by the customer free of cost, then it s amortisation cost has to be added in the value of the goods manufactured out of such tools and dies. He submits that the claim of the appellant that the demand is time barred is not correct for the reason that before the audit, neither department had occ....

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....or Ltd. 2003 (162) ELT 1117 4. We have carefully considered the submission made by both sides. 5. We find that there is no dispute that tools manufactured by the appellant were used in the manufacture of motor vehicle parts for Eicher Motors. Eicher Motors has paid the value of the tools that means the tools were sold by the appellant to Eicher Motors. Since the tool was sold and the value o....