TaxTMI 
TaxTMI 
2023 (3) TMI 435
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....e of such free materials in the assessable value of the finished product, the documents and records of the appellants were verified. It was noticed that the appellant was undervaluing their final product by not including the value of the materials mainly thermocol, foam, bell pins, blue ink supplied free of cost by their buyers M/s.Saint Gobain Glass India Pvt. Ltd. through gate passes. Show cause notice dated 08.10.2010 was issued to the appellant for the period April 2008 to February 2009 proposing to demand short paid duty along with interest and for imposing penalties. After due process of law, the original authority confirmed the duty along with interest and imposed penalty. On appeal, the Commissioner (Appeals) upheld the same. Hence ....
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....ate duty at the time of clearance of their final product viz. glass. 4. The department has raised the demand alleging that the appellant has not included the cost of free supply materials in the assessable value for payment of excise duty on wooden crates cleared by them. The issue is settled by the decision of Hon'ble Apex Court in the case of International Auto Ltd. Vs CCE Bihar - 2005 (183) ELT 239 (SC). The said decision has been followed in various decisions as follows : i) Commissioner Vs Motherson Sumi Systems Ltd. - 2008 (228) ELT A64 (SC) ii) Lawkim Ltd. Vs CCE Pune-II - 2007 (218) ELT 142 (Tri-Mumbai) iii) SRF Ltd. Vs CCE Chennai-I -2007 (220) ELT 201 (Tri.-Chennai) affirmed by Apex Court - 2016 (331) ELT A138 (SC); iv) C....
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....st of free inputs / raw materials supplied. The respondents are engaged in manufacture of automobile parts. In Ghatge Patil Inds. Ltd (supra) the Tribunal has relied upon International Auto Products case to hold that such addition of free supplied parts is not to be included in the assessable value. The same view has been maintained by Apex Court by dismissing the Civil appeal filed by department reported in 2015 (322) E.L.T. A28 (S.C.). In SRF Ltd (supra) the Tribunal was of the view that the entire exercise would be revenue neutral and therefore the demand cannot sustain. This view was maintained by the Hon'ble Supreme Court by dismissing the appeal filed by department as reported in 2016 (331) E.L.T. A138 (S.C.). Following the judgment i....
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....orted in 2016 (331) E.L.T. A138 (S.C.). Following the judgment in the case of SRF Ltd (supra) we are of the considered view that the situation being a revenue neutral one, the authorities below have rightly dropped the proceedings. The impugned order calls for no interference. The appeal is dismissed." 9. Ld. A.R has adverted to the discussions made by Commissioner (Appeals) in para-7 of the impugned order and also the decision of the Hon'ble Apex Court in Burn Standard Co. Ltd. Vs Union of India - 1992 (60) ELT 671 (SC). The Hon'ble Apex Court while deciding case of International Auto Ltd. (supra) considered and distinguished the ratio laid down in Burn Standard Co. Ltd. (supra). The facts of the present case are more akin to decision in ....