2017 (10) TMI 1046

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.... that the respondents were engaged in converting steel ingots in to CTD/TMT bars and MS round based on the job work agreements entered with various manufacturers of steel ingots. It was noticed by the department that the value adopted for clearance of CTD/TMT bars manufactured on job work basis was less than the cost arrived as per Rule 11 of Valuation Rules, 2000 r/w Rule 6. Thus the cost of manufacture was revised and worked out on the basis of the figures available in the balance sheet pertaining to the years 2001 02, 2002 03, 2003 04 and 2004 05. A show cause notice dated 3.11.2007 was issued proposing to recover duty of Rs. 19,65,387/- along with interest and also proposing to impose penalty. After adjudication, the original authority ....

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.... of finished goods manufactured corresponding raw material cost would be that of 100 kgs. of ingots used and not the cost of 93 kgs. of ingots. This aspect has not been considered by the Commissioner (Appeals). The adjudicating authority had examined these aspects and had confirmed the demand. He prayed that the matter may be remanded to the Commissioner (Appeals) for rehearing the appeal. 4. The ld. counsel Shri M.A. Mudimannan vehemently argued that the Commissioner (Appeals) had analysed the issue on merits as well as on limitation. He submitted that the show cause notice has been issued without any basis since the reliance is placed on the figures of the balance sheet of the appellant. Further, on the issue of valuation, earlier show....