TaxTMI 
TaxTMI 
2020 (6) TMI 355
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....nation of records of the appellant, it appeared that they have been awarded certain purchase order(s) for manufacture of stranded copper wire/ conductors (on job work basis) from Indian Railways. On examination of the purchase orders, it was observed that appellant have received raw material namely, copper scrap. In the column, description of stores, the terms and conditions, it is mentioned that the goods shall be fabricated and supplied of particular quality by using 100% pure copper scrap and cad copper, supplied by Railways. Thus, it appeared to Revenue that there was a specific mention that the raw material i.e. copper scrap/ cad copper supplied by Railways shall only be used for manufacture of goods meant for clearance to Railways. Fu....
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.... by Railways, it appeared to Revenue that the inputs (copper rod) were never used in the manufacture of final product and the credit have been taken on the basis of documents only without receipt of inputs. The Proprietor of the appellant explained that the scrap copper or cad copper received from Railways, was sold by them to M/s Aroma Hightech Limited and M/s Hindustan Copper Limited. Thereafter, they purchased good quality copper rods manufactured by them, which was received alongwith duty paying documents and accordingly the appellant have rightly taken cenvat credit on such inputs. It further appeared that the appellant manufactured stranded wire / conductor on job work basis for Indian Railways, as per the said purchase order. Indi....
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.... (SC) and in the case of Pawan Biscuits Co. Pvt. Ltd., -2000 (120) ELT 24 (SC) where it was held that in the case of goods manufactured on job work basis, the assessable value would be the job charges plus the cost of material used in the manufacture of the goods. Since the buyer - raw material supplier, supplied the said items (scrap) free of cost, price is not the sole consideration for the transaction between the supplier of raw material/ Railways and job worker / appellant. Therefore, after 01.07.2000, post amendment of Section 4 of Central Excise Act, 1944, in respect of goods manufactured on job work basis, valuation would be governed by Rule 11 of new Valuation Rules of 2000, read with Rule 6 read with the relied upon two rulings of ....
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....he ld. Commissioner, the appellant assessee have filed this appeal on various grounds including the ground of limitation. The issue involved in this appeal relates to valuation of goods manufactured and supplied under job work arrangement, for the Indian Railways. 7. Learned Counsel for the appellant urges that it is an admitted fact that whatever copper the appellant received from Indian Railways in the shape of scrap, they cleared the same to the manufacturer of the copper rod namely M/s Aroma Hightech Limited / M/s Hindustan Copper Limited. Such clearance is on sale basis. Further, it is admitted fact that appellant received copper rods from the said two manufacturers as inputs. Further, such copper rods have been received from the sa....
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....ned Authorised Representative for the Revenue has relied on the impugned order. 9. Having considered the rival contentions, we find that the appellant have maintained proper books of accounts and records of their transactions. Admittedly, the whole demand is for the extended period of limitation. The Revenue has only made a bald allegation of suppression of facts, alleging the non disclosure of actual sale value of the scrap received from the Railways. We find that there is no obligation cast on the appellant to intimate the Department on each and every transaction. The appellant have filed regular returns with the Department and have maintained proper records. Further, the appellant have obtained statement of "cost of production‟ ....