AI Drafter 
TaxTMI 
TaxTMI 
2019 (1) TMI 562
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....that during investigation by the department it revealed that they are paying duty on the goods cleared to various mobile service providers. However in case of wind mill parts they were undertaking activity of job work and cleared the goods without payment of duty under notification No. 6/2006 - CE dated 01.03.2006 under entry No. 84 read with list No.5 of said notification. They were issued show cause notices alleging that they have availed cenvat credit on all raw materials including MS Steel which is being sent to them by M/s Suzlon free of cost. That the inputs are being used in dutiable as well as exempted goods and they also did not maintain separate account. At the time of clearance the Appellant are reversing an amount equal to 10% o....
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.... to be made, the amount of cenvat credit availed by the Appellant is also to be added to such value. The adjudicating authority vide impugned adjudication order confirmed the demands and also imposed penalties as proposed in all show cause notices and the same were later upheld by the Appellate Commissioner, hence the present appeals. Since the issue involved in all the appeals are common we proceed to dispose all the appeals by common order. 2. Shri Saurabh Dixit, Ld. Advocate appearing for the Appellant submits that M/s Suzlon used to deduct the charges payable to the Appellant to the extent of scrap generation which shows that the job charges considered for working out assessable value were already inclusive of scrap component and hen....
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.... cannot be added to the job work assessable value. He also relies upon judgment in case of M/s Campco Chocolate Factory 2010 (258) ELT 273 (TRI). As regard impugned order wherein the demand has been also made on ground of addition of value of cenvat credit of raw material to assessable value on free issued goods supplied on behalf of M/s Suzlon, he submits that it is a trite law that credit amount cannot be added to the assessable value at the hands of the job worker. He relies upon Apex Court judgment in case of Dai Ichi karkaria Ltd 1991 (112) ELT 353 (SC), Supack Industries P. Ltd. 2009 (242) ELT 250 (TRI) and Nellai Concrete Prod. Co. P. Ltd.2013 (296) ELT 132 (TRI). He also submits that the value of scrap has been adopted on basis of a....
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....able value which is not the case here. Apart from above, it is also a fact that the scrap retained by the Appellant was also cleared by them on payment of duty. If the value of scrap is deducted from the value of raw material and added to the job charges, the assessable value would remain same. In case of M/s AD-MANUM PACKAGING LTD. Vs. CCE, INDORE 2016 (341) E.L.T. 348 (Tri. - Del.), the tribunal while dealing with the same issue held as under: "6. Firstly, the Revenue authorities want to include the value of scrap in the value of the goods job worked, i.e., HDPE bags and demand duty. It is undisputed that the appellant has discharged the duty liability on the scrap and again, demanded duty by including the value in job work charges, wh....
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....d goods is incorrect. This decision of the Tribunal was challenged by the Revenue in civil appeal before the Apex Court and the Apex Court on 6-9-2010 dismissed the appeal on the grounds of delay as well as on merit. This dismissal by the Apex Court is reported at 2010 (260) E.L.T. A84. 9. In view of the foregoing, we find that the case laws relied upon by the lower authorities and the Departmental Representative will not carry their case any further. 10. In the facts and circumstances of this case, we hold that the impugned order is unsustainable and is accordingly set aside. The impugned is set aside and the appeal is allowed with consequential relief." 5 We find that the above judgment of tribunal is equally applicable to the pr....