2019 (7) TMI 1165

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.....04.2009 and 31.05.2010 passed by the Commissioner (Appeals) whereby the Commissioner (Appeals) has denied the cenvat credit of Rs. 17,25,662/- (Rupees Seventeen Lakhs Twenty Five Thousand Six Hundred and Sixty Two only) to M/s. Vectra Advanced Engineering Pvt. Ltd. and also imposed equal penalty and on appellant No. (2) M/s. Tata Motors Ltd. penalty of Rs. 5,000/- (Rupees Five Thousand only) under Rule 27 of the Central Excise Rules, 2002 has been imposed. Since both the appeals arise from the same facts, therefore both the appeals are taken up together for disposal. For the sake of convenience, the facts of main Appeal No. E/2241/2010 are taken. 2. Briefly the facts of the present case are that the appellant is engaged in the manufactu....

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....pellants filed appeal before the Commissioner who upheld the Order-in-Original. 3. Heard both the parties and perused the records. 4. Learned counsel appearing for M/s. Vectra Advanced Engineering submitted that the impugned order is not sustainable in law and the same has been passed without properly appreciating the facts and the law. He further submitted that the appellant has rightly adopted the value as per Rule 6 of the Central Excise (Valuation) Rules after considering the principles laid down in the case of Ujagar Prints cited supra and also the Circular No. 619/10/2002 dated 19.02.2002. He further submitted that non-inclusion of certain elements can be at the end of M/s. Tata Motors Ltd. and hence the proceedings initiated ag....

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....lers are. According to appellant-assessee, the adoption of the price at which goods are sold to authorized dealers is the most apt in terms of section 4 of Central Excise Act, 1944. The appellant-assessee, being a job worker, is liable to duty on the value of the goods transferred for the purposes of undertaking job-work and the job-work charges recovered from the principal. On the job-work charges, there is no dispute. 7. The decision of the Hon'ble Supreme Court in re MDS Switchgear Ltd, affirming the finding of the Tribunal in disposing of the appeal before it, articulating that 7. The Tribunal has come to the conclusion that in fact there was no loss of revenue. It accepted the appeal by recording the following reasons....

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.... be seen is whether Bhilwara Processors was decided in accordance with the ratio of Ujagar Prints-III. After noticing the decisions in Ujagar Prints-III and Pawan Biscuits Co. (P) Ltd., in a rather brief order, the Tribunal held that it found merit in the submission that assessable value for processed fabric is to be arrived at by adding the processing charges and the processing profit to the cost of grey fabric supplied. Reliance was particularly placed on the observation in Pawan Biscuits Co. (P) Ltd., quoted hereinabove, that "the cost of raw material supplied by Britannia will have to be included in addition to the appellant's manufacturing cost and profit of raw material". We have already dealt with the decision in Pawan Biscuits Co. (....

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....ied at the stage of clearance of the goods by the job workers to the principal for the reason that at that stage there is no further consumption of the goods as a raw material either by himself or on his behalf for production of some other goods. But it does not mean that the basic principle governing the determination of value under Rule 8 is to be given a go-bye. The words "using reasonable means consistent with the principles and general provisions of these rules" occurring in Rule 11 clearly indicate the relevance of the provisions of Rule 8. Indeed, the provisions and the principle involved are the guiding factors for determining the assessable value of the goods under Rule 11. as held by the Larger Bench of the Tribunal in re Eicher M....