TaxTMI 
TaxTMI 
2024 (12) TMI 732
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.... the goods manufactured by the job worker and supplied to their principal manufacturer and the principal manufacturer cleared the final products on payment of duty. 2. Ms. Vacha Nanavati learned Counsel appearing on behalf of the appellant at the outset submits that identical issue has been decided by the Larger Bench of the Hon'ble Supreme Court in the case of International Auto Limited vs. Commissioner of Central Excise, Bihar - 2005 (183) ELT 239 (SC) and following the said judgment further judgments were passed as under:- (a) CCE &Cus., Pune vs. Menon & Menon Limited - 2015 (325) ELT 10 (SC) (b) Amco Batteries Limited vs. CCE, Bangalore - (2003) 4 Supreme Court Cases 41 - 2003 SCC Online SC 278 She further submit....
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....uty. It is this fact, in context of which the Hon'ble Supreme Court held that since the principal manufacturer has cleared the ultimate goods on payment of duty, the value of parts supplied by the principal manufacturer of the job worker is not includible in the assessable value of the job work goods in the hands of the job worker. The judgment is reproduced below:- "[Order]. - In C.A. No. 176/2000 : The appellant is a job worker manufacturing floor plates assemblies for TELCO. These floor plate assemblies are used by TELCO in the manufacture of excavators. TELCO made available several inputs to the appellant for the purpose of manufacture of the assemblies on which credit had been taken by TELCO. The appellant used TELCO's inputs ....
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....f manufacture of intermediate products so that they are returned to the factory for further use in the manufacture of final products. In such a case the credit is taken by the manufacturer of the final products on the inputs purchased by it which are made available to the intermediate product produces. Modvat credit is taken by the manufacturer of the final product on the inputs supplied by it to the manufacturer of the intermediate products which credit is reversed ultimately when the final product is removed from such manufacturers' factory. As far as the appellant, (the intermediate purchaser) is concerned, it is not liable to pay duty on the inputs supplied by TELCO since it had not taken the credit for the Modvat in respect of inputs. ....
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....ermore, the Court was not considering a situation where the question was of the liability of an intermediate product being subjected to excise duty. What was in consideration was the final product, namely, wagons. 7. In this appeal as we have already noted, the final product was the excavator. According to the Modvat scheme, it is the Modvat of such final product which would have to include the cost of the inputs and in respect of which Modvat credit could be taken at the time of clearance of the final product. The Tribunal having misconstrued the provisions of Rule 57F(2)(b), its decision cannot stand. The decision of the Tribunal is accordingly set aside and the appeal is allowed. In C.A. Nos. 4086-87/2001 : 8. ....