Customs, Excise and Gold Tribunal - Mumbai
Metal Tubes And Rolling Mills vs Commissioner Of Central Excise on 16 October, 2003
Equivalent citations: 2004(175)ELT658(TRI-MUMBAI)
ORDER Jyoti Balasundaram, Member (J)
1. After hearing both sides for some time on the application for waiver of predeposit of duty of Rs. 1,03,826/- confirmed on Copper Wire Bar failing under chapter 74 of CETA, 1985 cleared during the period 18.7.2000 to 1.6.2001 by including 15% notional profit in the assessable value of the goods, and penalty of Rs. 10,000/- imposed upon the assessee, we found that it was possible to hear and decide the appeal itself at this stage; hence after waiving the predeposit of duty and penalty, we proceed to hear and dispose of the appeal with the consent of both sides.
2. The appellants had added 10% notional profit to their cost of production to arrive at the assessable value of their goods. According to the department, as per provisions of Section 4(b) of Central Excise Act, 1944 and Rule 11 of the Central Excise Valuation Rules 2000, and in the case of job work, it was accepted by the department and various trade associations of Textile Industries to add 15% notional profit was required to be added. It is on this basis that duty stands confirmed and penalty imposed.
3. On hearing both sides, we find that it was held by the Tribunal decision in the case of Tara Industries Ltd. v. CCE Chandigarh [2003 (57) RLT 623 (CESTAT-Del.)] that the assessable value of goods manufactured job work basis is to be determined on basis of cost of raw material plus job work charges even after 1.7.2000. The same view has been taken in the case of Mahindra Ugine Steel Co. Ltd. v. CCE Pune-I [2003-(58) RLT 212 (CEGAT-Mum)]. In the light of the above decisions even the payment inclusion of 10% notional profit was not required.
4. Following the ratio of the above orders of the Tribunal, we set aside the present impugned order and allowed the appeal with consequential relief.