2019 (7) TMI 1795

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....d i.e. November, 1993 to February, 1996, the appellant had manufactured Perfume, Hair Oil/Marico's Hair and Care branded product of M/s Marico Industries Ltd. on job work basis and filed Price List-II under erstwhile Rule 173C of Central Excise Rules, 1944. Alleging that the transaction between the appellant and the supplier M/s Marico are not on principal to principal basis, duty was demanded on the price at which the goods were sold by M/s Marico Industries Ltd. On adjudication, the Assistant Commissioner adopted the principle applicable for determination of assessable value of goods manufactured on job-work basis under the erstwhile Central Excise Valuation Rules, 1975 and confirmed the differential duty of Rs. 2,78,147/- for the said pe....

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....ico Industries Ltd. on job work basis, but erred in confirming the demand on the price at which M/s Marico Industries Ltd. sold the goods to their customers. It is his contention that the raw materials were purchased by M/s Marico Industries Ltd. directly from the seller of the raw materials and delivered at the premises of the appellant. Therefore, finding of the learned Commissioner (Appeals) to include the overheads expenses of M/s Marico Industries Ltd. in the cost of raw materials purchased and supplied is unsustainable and contrary to the principles of valuation. He has submitted that the C.A. certificates provided by them clearly reflects the cost of raw materials, packing material, overhead expenses which included the profit margin ....

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.... it is based on estimation without any contrary evidence. He submits that major raw material used in the manufacture of finished product on job-work basis is starch, which was procured from the raw materials supplier. In the landed cost of the raw materials, the cost of freight has been included. In support, he has referred to the invoices enclosed with the appeal paperbook. 4. Learned AR for the Revenue reiterates the findings of the learned Commissioner (Appeals). He submits that the invoices that are now placed in support of the claim that the raw materials' cost taken by the Chartered Accountant in their certificate is the landed cost at the door step of the appellants, were not produced earlier. He submits that the said invoices nee....