TaxTMI 
TaxTMI 
2025 (11) TMI 595
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..../Aluminum conductors, availed CENVAT credit on the raw material i.e., bare Copper and bare Aluminium apart from other raw material, after insulation, the goods are cleared on payment of duty on the assessable value. 3. In the case of 'job work' undertaken by the Appellant, the customers supply all the raw material directly from the manufacturer to the job worker on consignee basis. On receipt of the material for job work, the Appellant availed the CENVAT credit on the value of raw material and after processing the same, job work charges are added to the value of the raw material received and duty is discharged on the same. Alleging that the said procedure is not as per the Central Excise Valuation Rules, 2008 proceedings were initiated and following the clarification issued by the Board vide Circular No.6/15/2009-CX1 dated 31.03.2010, the Adjudication authority confirmed the demand along with interest and appropriated the amount paid by the Appellant under protest on 29.12.2010 and also imposed equal amount of penalty. Aggrieved by the said order, an appeal was filed before the Commissioner (Appeals) and Commissioner (Appeals) as per impugned order dated 30.10.2014 rejec....
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....mandate of Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. 7. As regards the Circular, Learned Counsel further submits that this Tribunal has considered the same in the matter of M/s. Advance Surfactants India Ltd., Vs. Commr. of C. Ex., Mangalore-2011 (274) ELT 261 (Tri. - Bang.) wherein it is held that:- "8.1 It can be seen that the clarification issued by the C.B.E.C. seems to be untenable in view of the foregoing reasons. The views expressed in the Circular are inconsistent with the provisions of Rule 8. The provisions of Rule 8 can be brought into play only if there is consumption of the goods by himself or on behalf of an assessee. Since the said clarification is against the mandate of the said Rule 8 of Central Excise Valuation (Determination of Prices of Excisable Goods) Rules, the said clarification is untenable and has to be held as such". 8. Learned Counsel further drew our attention to Rule 8 of Central Excise Valuation Rules which came into force w.e.f. 01.07.2000. "Where the excisable goods are not sold by the assessee but are used for consumption or on his behalf in the production or manufacture of other ....
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....own by Hon'ble Supreme Court and considering the above facts, invoking the extended period of limitation and penalty imposed on Appellant are prima facie illegal and unsustainable. 11. The Learned Authorised Representative (AR) for the Revenue reiterated the finding in the impugned order and submits that there is no dispute regarding the fact that the Appellant had undertaken the activities on behalf of the principal manufacturer, M/s. BHEL and others and the insulated Copper/Aluminum wire returned back to them was used for further consumption in their factory premises for manufacturing of power supply and distribution equipment manufactured by them. 12. Heard both sides and perused the records. 13. We find that as per the finding of the Adjudication authority, Rule 10A can be brought into play only when there is a situation 'where excisable goods are produced or manufactured by a job worker on behalf of a principal manufacturer and cleared to the buyer of the principal manufacturer or cleared to his Depot or consignment agent. We find that the appellant has relied on the decision in the case of M/s. Advance Surfactants India Ltd. (supra) where it is held that:- ....
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....rk is undertaken. They worked out the assessable value (for Central Excise purposes) of wool tops as the aggregate of the cost of raw material and their job work charges and paid duty on the basis of such assessable value. Under the impugned order, differential duty has been demanded on the basis that the goods should have been valued under Rule 8 of the Central Excise Valuation Rules, 2000 which came into force w.e.f. 1-7-2000. We read that Rule: "Rule 8. Where the excisable goods are not sold by the assessee but are used for consumption or on his behalf in the production or manufacture of other articles, the value shall be one hundred and fifteen per cent of the cost of production or manufacture of such goods" A perusal of the above Rule makes it clear that it relates to valuation of "excisable goods not sold by the assessee but are used for consumption or on his behalf in the production or manufacture of other articles". This is clearly not the case here. The goods are not being captively consumed by the assessee himself or on his behalf by somebody else. There could be no argument that this rule has any relevance to the present case. Learned counsel for the ap....
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....rk basis are required to be valued according to the rule laid down by the Apex Court's judgment in the case of Ujagar Prints Ltd. [1989 (39) E.L.T. 493 (S.C.)] even after 1-7-2000. The original valuation and payment of duty took place according to the principle of valuation approved by the Apex Court. The impugned orders are contrary to the specific provisions of valuation rules as well as clarification issued by the Central Board of Excise and Customs. They are required to be set aside. We do so and allow the appeals. In view of our disposing of the appeals themselves, stay petitions do not survive." 10. In yet another case, this Tribunal has very clearly held that provisions of Rule 8 not applicable to a situation of job worker. The said ratio of the judgment is reproduced as under:- "4. Rule 8 of the Valuation Rules reads "Where the excisable goods are not sold by the assessee but are used for consumption by him or on his behalf in the production or manufacture of other articles, the value shall be one hundred and fifteen per cent of the cost of production or manufacture of such goods." For the provision of this rule to apply, therefore, two requirements ar....