2018 (6) TMI 1290

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....printing cylinders by way of amortization in the assessable value as the said cost of the printing cylinders was met by the purchaser which was collected by the appellant separately by way of debit notes etc. 3. In the earlier round, this Tribunal had confirmed the demand on merits but held that the method of valuation was wrong and accordingly remanded by its final order dated 17.01.1997 for the quantification of the demand as well as the penalty upholding the invocation of extended period of limitation. Being aggrieved the appellant had preferred Civil Appeal Nos. 5291 - 5293 of 1997 and by order dated 17 December, 2003 Hon'ble Supreme Court was pleased to dispose of the appeal granting liberty to the appellant to file an application....

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....c moulded items like cabinet for TV, photocopy machine etc., became liable to tax with effect from March, 1986. As the finished goods were tailor made, according to the specifications of the buyer for manufacturing such moulded components. Mutual Industries required moulds and dies. Some of the moulds and dies manufactured by the appellant were sold to the customers on payment of duty. Sometimes customer supplied moulds free of charge to Mutual Industries for manufacture of the components. By using such moulds supplied by the customers Mutual Industries manufactured the moulded components which were sold to the buyers by filing price list under Part-II. Subsequently show cause notice dated 25th October, 1991 was issued stating that Mutual I....

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....on list during the period from October, 1986 to August 1990. It is also admitted that the manufacturer filed price list declaring selling price of the goods and determining the assessable value for the purpose of levy. From this admission made in the show cause notice, it is evident that the manufacturer made available to the authorities under the excise law all the details regarding transaction entered into between the manufacturer and the purchaser. This means that the terms and condition of the contract under which the manufacturer was producing goods for the customer was made available to the Department. From the contract which was thus known to the Department they ought to have noticed that cost of mould which was also part of assessab....

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.... allowed in the above lines." 5. The learned counsel also points out referring to Circular No. 170/4/96 - CX dated 23 January, 1996 wherein the Board clarified the issue of calculation of assessable value of castings wherein the patterns/moulds etc., were supplied by the buyers of the goods. It was clarified that the proportionate cost of pattern/mould as to be included in the assessable value of the casting even in cases where such patterns are being supplied by the buyers of the casting or are get prepared/manufactured by the job worker at the cost of the buyer. Further clarifying in cases where there is difficulty in apportioning the cost of the pattern, apportionment can be made depending on the expected life and capability of the pat....