Supreme Court of India
Commissioner Of Central Excise, Pune vs Kripa Chemicals Pvt. Ltd on 4 November, 2004
Equivalent citations: AIR 2005 SUPREME COURT 232, 2005 (1) SCC 12, 2004 AIR SCW 6522, 2004 (7) SLT 272, 2004 (9) SCALE 448, 2005 (1) BLJ 786, (2004) 8 SUPREME 907, (2004) 24 INDLD 436, (2004) 117 ECR 525, (2004) 9 SCALE 448
Author: Arijit Pasayat
Bench: Arijit Pasayat, C.K. Thakker
CASE NO.: Appeal (civil) 5000 of 1999 PETITIONER: COMMISSIONER OF CENTRAL EXCISE, PUNE RESPONDENT: KRIPA CHEMICALS PVT. LTD. DATE OF JUDGMENT: 04/11/2004 BENCH: ARIJIT PASAYAT & C.K. THAKKER JUDGMENT:
JUDGMENT 2004 Supp(5) SCR 970 The Judgment of the Court was delivered by ARIJIT PASAYAT, J. Heard.
This appeal involves two issues. One of them relates to the calculation of cost of production and whether excise duty paid on raw material, if modvatted, is to be included in determining the cost of production of excisable products. This issue has been examined by this Court by a three Judge Bench in Collector of Central Excise, Pune v. Daiichi Karkaria Limited (1999) 112 353 SC and it was held that excise duty paid on raw material, if modvatted, is not to be included in determining the cost of production of excisable products. The other issue raised is the question as to whether profit earned by the job worker is to be included and to what extent? In the clarificatory order passed by this Court in Ujagar Prints etc. etc. v. Union of India and Ors., (1989) 39 ELT 493 SC, it was explained by way of an illustration that the value of the raw material, the value of the job work done and the manufacturing profit and the expenses for the processing have to be taken into consideration. The determination of the excisable value shall be done on that basis. The appeal is, accordingly, disposed of.