2025 (1) TMI 675

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....est and penalty under Section 11AA and 11AC of the Act respectively. 2. During the course of audit, it was observed that the appellants were engaged in the manufacture of "Malt" on "job-work" basis for the principal manufacturer, M/s. United Breweries Limited ("UBL") and after manufacturing, the said "Malt" was returned to the principal manufacturer, who captively consumes it in manufacturing of non-excisable /exempted final products. It was further observed that the appellants were paying duty on the basis of cost certificates given by the cost accountants, M/s. Gurvinder Chopra & Company of M/s. UBL. It is evident from the cost certificates that to arrive at the cost of production, cost of basic raw material "Barley‟ and the conv....

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....not appear. However, on the next date of hearing on 04.11.2024, the appellant still did not appear and the appeal was directed to be listed on 06.01.2025, but as the appellant failed to appear, we have no other choice but to hear the appeal on the basis of the appeal papers filed by the appellant and after hearing the Authorised Representative for the Department. 4. The sole issue for consideration is whether the value of sprouts sold by the appellant is to be included in the assessable value of the "Malt" and the duty is payable while clearing the same to "UBL" during the period in question. 5. In order to consider the first issue, para-6 of the Malt Agreement dated 18.02.2011 with UBL is quoted below:- "6. The manufacturer ....