TaxTMI 
TaxTMI 
2026 (3) TMI 1243
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....al consideration flowing directly to the Appellant and whether they are includable in the assessable value of tin containers/bitumen drums manufactured by the Appellant on job work basis for M/s Bharat Petroleum Corporation Ltd KRL, Cochin. As per the agreement entered by the Appellant with principal manufacturer M/s Bharat Petroleum Corporation, Cochin, they were engaged in manufacture of tin container/bitumen drums on job work basis. As the per contract, BPCL supplies steel coils free of cost and delivers the same directly to Appellant's premises. Appellant availed CENVAT credit on the steel coil and BPCL is paying fabrication charges and delivery charges at the rate fixed as per the agreement. On verification of records/documents, it is ....
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....er submits that the issue relating to delivery charges was taken up by the department way back in 2004 by issuing show cause notice No. 44/2004 CE dated 1.08.2004 and the same was dropped vide Order-in-Original No. 14/2006 again the demand of duty on delivery charges was confirmed in Order-in-Original No.18/2014 dated 23.05.2014 but once again dropped in 2016 vide Order-in-Original No. 18 & 19/2016 dated 29.02.2016 and Department had not reviewed that Order. In the absence of any review of the Department should not have reviewed the order dropping the demand for the subsequent period. The same issue was again disputed by the department on the basis of an Audit objection for the period 2015-16, which was dropped by the Adjudicating Authority....
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....the place of removal, then the value of such excisable goods shall be deemed to be the transaction value, excluding the cost of transportation from the place of removal up to the place of delivery of such excisable goods. Since the price is not the sole consideration in the instant case, the Section 4(1)(a) of the Valuation Rules is not applicable in the instant case. Further submits that the Board has instructed that in respect of goods manufactured on job work basis, valuation would also be subject to the two decisions of the Hon'ble Supreme Court in the case of Ujagar Prints Ltd. [1989 (39) ELT 493 (SC) and Pawan Biscuit Co. Pvt. Ltd. [2000 (120) ELT 0024 (SC)]. 5. Heard both sides and perused the records. As regarding the demand ....
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....hese circumstances, in our view, the value of scrap need not be included in the assessable value of the products manufactured by the appellant. 6.5 Moreover, we do not find any justification for invoking the longer period. The show cause notice itself is relying on various documents which were submitted by the appellant to the department. If the department had scrutinized the records properly, they could have issued the show cause notice well in time. Therefore, the longer period is not applicable. 6.6 Another point to be noted is that whatever duty is paid by the appellant is taken as credit by M/s. WIL. Definitely, there is revenue neutrality and this has a bearing on the question of invoking the longer period, because w....
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.... date of sale, which apparently would be the date of delivery, are liable to be included. Consequently, where the sale is effected at the factory gate, expenses incurred by the assessee upto the date of delivery on account of storage charges, outward handling charges, interest on inventories (stocks carried by the manufacturer after clearance), charges for other services after delivery to the buyer, namely after-sales service and marketing and selling organization expenses cannot be deducted. It will be noted that advertisement expenses, marketing and selling organization expenses and expenses including advertisement after sale service promote the marketability of the article and enter into its value in the trade. Where the sale in the cour....