2017 (11) TMI 23

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.... engaged in the manufacture of Roller Tappet Body and Pump Barrel falling under Chapter 84139190 of CETA, 1985.  The appellants are also supplying pump barrel to M/s. Bosch who placed an order on the appellant to manufacture a tool for R.12 lakhs which the appellant manufactured and amortised at the cost of Rs. 60 per piece and added it to the value of pump barrel and discharged the duty thereon as the tool was retained by them and used in the manufacture of pump barrel supplied to M/s. Bosch.  Notwithstanding the amortisation while paying duty for the month of September, 2008, the appellant has erroneously added the tool cost of Rs. 12 lakhs to the value of the clearances for the month of September, 2008 and paid amount also whic....

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....amortised tool cost of Rs. 12 lakhs @ Rs. 60 per piece and added it to the value of pump barrel and discharged duty thereon as the tool was retained by the appellant and used in the manufacture of pump barrel supplied to M/s.Bosch.  He further submitted that as per the Central Excise Valuation Rule, the tool cost has been amortised and duty has been discharged on the value of the pump barrel after adding the tool cost to the value of the pump barrel and this fact has been verified by the Department and found to be correct.  But the Commissioner(Appeals) has wrongly observed that the original authority has not discussed the aspect of basis of method of amortisation of tools and fixtures.  He further submitted that the Commissi....