2008 (12) TMI 138

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... basis from their buyer/customer viz M/s. Videocon International Ltd., Aurangabad (M/s. VIL in short) from time to time for manufacturing EPS Buffers i.e. Thermocol, and these goods were cleared on payment of Central Excise duty by loading the assessable value based on the purchase order of said customer. It was found that while finalizing the purchase order, M/s. VIL had not considered the cost of such dies/moulds, which ought to have been added in the cost of final product of respondents factory by amortising the same over the life of moulds/dies. This act resulted into short payment of duty of Rs. 21,194/- for the goods so cleared by the respondents during the periods from 1997-98 to 1999-2000. 3. The issue was decided by the Joint Comm....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... perused the records. 7. I find that the case relates to the periods 1997-98 to 1999-2000. I also note that there were conflicting judgments on the issue regarding the inclusion of amortization cost of moulds/dies in the assessable value of the finished excisable goods manufactured out of such moulds/dies during the relevant period. The issue came to be resolved by the Larger Bench decision of the Tribunal in the case of Mutual Industries Ltd. v. Collector of Central Excise, Mumbai reported in 2000 (117) E.L.T. 578 (T). This decision is dated 16-3-2000. It was held by the Larger Bench that the proportionate cost of moulds, supplied free by the customer and used in the manufacture of finished goods is includible in the assessable value. Thu....