2018 (1) TMI 639

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....ng copper tubes as free supply from them. He argued that CBEC Circular No. 619/10/2002-CX. Dt. 19.2.2002 clarifies that assessable value in such situation will not include the profit or the expenses like advertisement and publicity, overheads etc. incurred by the buyer or the supplier of the raw material. He argued that impugned proceedings seek to include in the assessable value the expenses incurred on Inward transport charges, Insurance charges, Overheads etc. incurred by the supplier and the same cannot be included in the assessable value. He argued that in terms of Rule 6 of the Valuation Rules, 2000. They are required to include only the value of goods and not other cost in the assessable value. 3. Ld. AR relies on the impugned order....

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....he relevance of the word cost observing that value of an intermediate product when used as raw material, is cost of the raw material but for the purpose of determining its assessable value at the hands of job worker, what is relevant is the value and not cost in the sense of cost of manufacture of that product or raw material. The decision in Bhilwara Processors, if we may say so with respect, was rendered on a mis-reading of the decision in Pawan Biscuits Co. (P) Ltd. which had simply followed Ujagar Prints-III. From the above, it is apparent that what is relevant for the purpose of determining assessable value is the value and not the cost. In that sence it was held that for the purpose of determining its assessable value at the hands o....